- 4th May 2021
- Posted by: DMM
- Category: Development Finance
Exclusive new developments located in quiet, convenient locations are always interesting and this example of development funding in Wiltshire was no different.
This project comprises the development of two detached houses tucked into a delightful location in the centre of a pretty Wiltshire village. The houses have been designed to be sympathetic to the established architecture of the surroundings and with excellent accommodation of three reception rooms, four bedrooms and three bathrooms. The project also had an attractive GDV of £1,600,000.
The Funding Solution
In this instance, the borrower used the Developer Money Market online loan search platform to check instantly what potential loan products were available. The borrower selected six loan products that they felt would offer attractive terms and then they uploaded supporting documents via the platform, such as their appraisal (breakdown of costs), a copy of the planning consent, a statement of assets and liabilities, etc. A handful of lenders not to be approached was also highlighted.
The opportunity was managed by one of the DMM team who reviewed the loan requirements, together with the borrower, and the loan products selected. Having run our own appraisal of the deal we worked with the borrower to see which lenders would have appetite for development funding in Wiltshire and this type of ground up build. A detailed funding requirement document was compiled ready for presentation to the potential lenders, together with all the additional documents that supported the case.
In this instance, the gross facility required would be around £600,000 over a term of 18 months and the team looked at several potential lender products to assess the options for the borrower. A loan solution was found that not just met the developer’s initial requirement, but also offered the option to reduce their day 1 cash input. Indicative terms were secured for the full 18 month term, with a minimum term of 3 months, and an interest rate being non-compounding. As usual, the lender took security of a 1st charge on the site with a personal guarantee and debenture.
If you are looking for development funding in Wiltshire, then Developer Money Market can offer independent assistance to find a solution.