Case Study: Clacton-On-Sea
Project Completed: September 2019
The borrower for the project is an experienced developer with numerous previous residential builds constructed by his company and has consistently brought properties to market of a high standard. The project in Clacton-on-Sea was ambitious as it was a complete ground-up development of two residential properties on a derelict field which formed part of the borrowers existing commercial land.
Due to the experience of the developer involved the broker was not short of lenders interested in funding the project but given Mint’s experience of dealing with development loans and previously having dealt with this borrower it was no surprise that Mint was the first choice when the intermediary began looking for finance.
In total Mint provided funds totaling £285,000 with first drawdown within 22 days of the initial request for the development of the two properties over a term of 12 months with a first charge on the land and with the deal including a guarantor. While Mint set the term at 12 months we expected the borrower to redeem much quicker. However, as is common practice at Mint we build additional time into a development loan when the exit is based on resale to allow the borrower’s journey to be as stress-free as possible and to limit the need to refinance.
Needless to say the client met all the agreed milestone tranche releases, this allowed for their exit strategy of sale of units on completion to happen far quicker. The project has now completed and the borrower exited the loan well before their redemption date with properties on the market for £250K+ each.
The borrower’s journey was extremely efficient from start to finish and it is this strong client relationship which has seen them return to Mint during the process of this loan to seek an additional loan for the development of the commercial premises on the same site which they are now set to convert in to a mix of commercial and residential flats.
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.