Case Study: Chelmsford, Essex
Project Completed: September 2019
Mint has recently had a loan redeem with a developer who was in the middle of an extensive development project of 3 residential barns. The developer who mainly develops locally has an extensive career in development and has a history of barn conversion developments for residential purposes. While acknowledging that the scope for 3 barn conversions in one project would heighten awareness to lending given the extensive history of the developer they did not have any issues attracting finance.
The borrower originally obtained development finance from another lender, which they found to be cumbersome and unresponsive when trying to gain access to funds to move the project along, this combined with an unforeseen bat infestation in one of the part complete barns meant that they required a flexible lender to step in, and take the scheme forward.
Mint were approached by the developer as they weren’t happy with the current working relationship with the lender as they were deemed to be slow to be not providing an efficient service in respect to a development project. As such when the borrower needed to re-finance they seen this as the perfect opportunity to look to a new borrower who specialised in development finance. Having financed numerous barn projects throughout the UK and given the developers experience our underwriters had terms quickly in place and valuers on-site quickly to get loan ready for drawdown.
Mint was able to refinance the deal and provide a loan with a total value of £1.36M over for the completion of the two remaining barns for a term of 12 months. Given the exit of the loan was the resale of the properties we built additional months into the loan to make the journey as stress-free as possible for the developer. However, given the experience of the developer we did expect them to complete the project prior to the set completion date.
The project management team who worked with the developer fed back that due to the experience of the developer that they expected to complete the development ahead of schedule and this proved to be the case as they redeemed within 5 months of the first drawdown. Further to this due to how we structured the loan we ensured that the developer had no early exit fees to pay. Due also to the high standard of the development, the 2 remaining barn conversions were off the market prior to the build completion meaning when the project did finish effectively so did their loan with Mint.
Should you require any auction or development finance for a new or upcoming project then contact Mint Bridging today to discuss your needs or alternatively submit an eligibility check to determine your level of funds.