Project Location: West Midlands
Project GDV: Around £900,000
Development Stretch Funding Facility: £560,000
Funding Security: First charge
Facility Period: 8 months
When assessing loans for property development it is always essential to know that the prospective borrower has very good local knowledge and the experience to successfully manage a complex construction programme. In this example, our client not only knows his local property market extremely well but also brought excellent construction experience and an ability to create a design that met local market demands.
The project comprised the demolition of a single dwelling on a corner plot with planning consent for three detached houses. Each property was designed to include a lounge, separate kitchen/breakfast room, three or four bedrooms, integral garage and good size private gardens. Overall, the total floor area of this project comprises around 4,000sqft of accommodation and will have a GDV of around £900,000.
This is a secluded non-estate development of family houses situated close to a village centre but also within just a few miles of Tamworth. As such the project appeals to families wanting all the conveniences of a brand-new home but without being on a large new estate. The design of these attractive and high quality houses is also appealing to down-sizers and retirees for the same reasons.
As a technical build the project is straight forward but the developer enhanced the existing planning consent with improved use of available floor space for two of the houses which broadened the likely appeal of the units to potential buyers. The developer has an established track record of local new build residential development and a polished approach to marketing that enabled the site to be promoted at an early stage to achieve off-plan sales.
Loans for Property Development
Calmez have supported this client with loans for property development totalling £560,000 on drawdown of certified works and over a term of 8 months. Stretch loans for property development are secured with a first charge with interest and capital repaid on a rolled-up basis.
CALMEZ offers loans for property development to developers and builders with proven track records and whom meet our lending requirements. Development stretch funding provides developers with a means to spread their capital across a greater number of projects without a requirement for a separate mezzanine funder. Funds are secured by a first charge on the subject site with a high loan to value ratio. For more information on loans for property development then please contact us here or by calling 0207 096 1900.