A property developer undertaking the refurbishment of a residential property in the Southwest had reached the maximum borrowing capacity with their existing lender. Additional funding was required to complete the remaining works, but their existing facility could not provide the flexibility or leverage needed.
With cash flow becoming increasingly important, the developer required a funding solution that could be arranged quickly and provide immediate access to capital.
We structured a bespoke development exit facility at 75% LTGDV (Loan to Gross Development Value), enabling the borrower to:
- Release additional capital to complete the remaining refurbishment works.
- Receive day-one net proceeds to support ongoing cash flow requirements.
- Exit their existing lender and move onto a more suitable funding structure.
- Sell the property upon completion of the refurbishment as the agreed exit strategy.
Despite requiring both a full RICS valuation and legal due diligence, we successfully completed the funding within an accelerated timeframe.
Transaction Summary
- Initial enquiry to drawdown: 10 working days
- Loan amount: £520,000
- LTGDV: 75%
- GDV: £695,000
- Loan term: 12 months
