A Mint Development loan has recently come to completion in Poole in Dorset. Our borrower’s impressive journey is detailed below:
The developer controls a small but rapidly expanding portfolio and is experienced at the practice of purchase and redevelopment projects which the Poole project falls under. They have been operating for a number of years and have previous developments within their portfolio including residential flats and kerbside properties. The plans of the developer were to undertake a heavy development on the current property to redevelop from a two-story property into 3 stories with an accompanying rooftop garden.
The client took the opportunity to purchase this well positioned plot at short notice due to the original buyer’s failure to complete. As such speed was important to the developer in order to secure the property at short notice. The client required a loan amount of £842,000 which would include a proportion of the purchase, as well as all development, works at an LTGDV at 57%.
The developer’s plan was to get the works completed and the property on the market for sale within the 12 month loan term and to remarket the property in the price bracket of £1.25M – £1.5M.
Mint was approached to provide funding for the purchase and development with the time to provide funding critical in order to progress. Our underwriters were able to perform all the comprehensive checks required to provide an agreement in principle the following day with valuations completed within 24 hours. The loan agreement included a first charge on the property and consisted of an LTV of 65%. The loan was completed within 3 weeks with Mint providing the first drawdown opportunity for the borrower within 11 working days of the initial offer.
Working with developer Mint provided just under 50% of the loan value for day 1 drawdown. Mint’s in-house portfolio managers worked very closely with the developer from the outset of the agreement to progress the funding within a statement of works to deliver further tranche releases that fitted their 6 month re-development time scale. Further to this we added a 1 month development contingency ( 7 months build in total ) and applied a further 5 months to the loan to provide a comfortable re-sale period for the developer.
With the property now complete the finished build outcome is a testament to the ambitious timescales and quality to detail that the developer has displayed from the outset of the project.
Should you require any development finance for a new or upcoming project then contact Mint today to discuss your needs or alternatively submit an eligibility check to determine your level of funds.