Case Study: Basingstoke
Project Completed: March 2020
The developer who is from the construction industry has previously developed numerous projects for other clients but this will be the first development he has undertaken for himself. The project also benefits from a benefactor who will be acting as a guarantor for the project and who too has experience within the construction industry. The developer requires a loan to part-fund the purchase of the site and to provide development finance to complete the works.
The project will be a 3 bedroom ground-up development situated in the village of Preston Candover in Basingstoke. The land to be purchased is associated to an adjacent dairy cottage and has been granted planning permission for a single residential dwelling.
With the planning already agreed and just the initial purchase to complete the developer has set themselves an ambitious target to complete the project within 7 months once the sale has been finalised. The borrower is also looking to complete the project under a construction management procurement route meaning there is no fixed pricing thus placing increased risk on the project should any part of the construction be delayed. The developer intends to exit their loan on sale of the property but at time of application they have no contingency funding built into their costings.
Mint Bridging acknowledged the experience of the developer irrespective of this being their first individual project and were able to facilitate a development loan of £455,000. The supporting purchase finance was made available day one with additional development tranches to be drawdown at key development milestones throughout the build. Further to the developers timescales and their construction procurement route Mint Bridging supplied an additional 10% contingency funding within the loan facility should they need it and we also included additional time at the end of the loan to allow for the sale of the property shoulf this be needed.
The purchase of the property was able to happen at speed due to the experience of our underwriting and asset management expertise meaning that the project could begin at pace without any significant hold ups. The additional time we built into the facility has served the borrower well as the project delivery increased marginally from the initial 7 month time frame. The project has now completed and been released to market with the development comprising of a truly exceptional 3 bedroom detached property.
More and more developers are turning to Mint Bridging for our award-winning finance solutions. Speak to us today regarding your funding needs and to understand why our clients love working with us. With no restrictions on the level of experience required and extremely competitive rates, Mint Bridging is one of the most flexible lenders in the UK.
Do you need Development or Bridging Finance? Talk to the Mint Bridging team today: 0161 710 2006
Alternatively, submit an Eligibility Check and find out what you could borrow.