The Project
This property development was for a pair of 3-bed semi-detached homes which were already mid-development. Due to construction delays, the developer faced some funding challenges and needed to refinance their existing loan, as well as secure additional funding to complete the build.
We were able to loan £1,000,000 which cleared the existing development loan (£695k) and covered the remaining build costs (£305k). The properties eventually sold for £1.4m which made this a 71% loan to value, higher than we would typically loan. However, the project was in a very sought-after location and was being constructed to a very high quality which gave us confidence in the return on our investment. The project completed smoothly and the properties were sold quickly.
This case study is a nice example of why working with independent lenders like Hunter Finance can be advantageous. Although we have guidelines for our maximum loan-to-value, we treat each and every project uniquely and make quick decisions based on the specific circumstances.
In this instance, we had confidence in the property developers plans, the quality of the build, the property location and so we were able to take a higher financial risk. Other banks or high street lenders are not always able to be so flexible or to take such a personalised approach.
Location
Ashley Green in Buckinghamshire is a popular village with London commuters. The village is located within a commutable distance to London but has a traditional village charm with a pub, church, school and farm shop. Properties in the village sell quickly, particularly recently renovated properties suitable for executives and their families.
