Case Study: Dunmow, Essex
Project Completed: September 2019
Mint has recently had the opportunity to work with a developer who was embarking on their most challenging development to date. The developer who operates locally has over time bought and sold multiple houses and has gradually been increasing the level of development scope. Prior to their latest development project, they demolished a house and rebuilt it for resale and this was located in the same town as their ambitious new development. This new project was to be their first ground-up development from scratch. The project was a step up in undertaking for the developer not only for the scale but also for the standard of the development that they were looking to construct.
The developer was well accustomed to the area and had secured the land following a previous ground-up development and now they were looking to fund the development for the project with planning having been formally approved and given the green light to begin the construction.
Mint were approached similar to a number of other lenders for funding but were selected by the borrower due to our reputation for financing ground-up developments and also due to our lengthy experience with working with developers on ambitious projects. Due to Mint’s ability to treat every case individually and our comprehensive underwriting we were able to provide the borrower with more favorable rates than the majority of other lenders. We were also able to favorably structure the loan to the developer’s needs for their first-ever greenfield to ground-up development.
Mint provided a loan of £640,00 secured on a 1st charge on a term of 15 months with drawdown within 14 days of initial loan acceptance. The facility also included £50,000 in contingency budget should any unforeseen issues arise with the build. The plan for the developer was to exit the loan on completion of works via the sale of the property. By providing a 15 month term Mint was ensuring the developer had a comfortable amount of project delivery time given that this was their first complete ground-up development. Further to this as is customary for Mint loans with exit on sale we added additional time into the loan to ensure there was a good period of sale time after the schedule of works was set to complete.
Given the developer’s experience even taking into account this was their first complete ground-up development we did expect them to complete the development on time. Throughout the process, the developer worked efficiently ensuring all development tranches were drawdown on time and as expected they completed prior to the estimated date. The results of the development are to an exceptionally high standard with the development on the market with an asking price in excess of £1.4M.
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.