We were approached by a developer who was in the final stages of completing theconstruction of a luxury residential development in North West London. It consisted of 25apartments. The developer had done little marketing given the state of the luxury residentialmarket at the time – but had at least secured presales in the form of 4 exchanged units. Thelender required a bridging loan to refinance the outstanding development and mezz facilitiesin order to allow more time to market and sell the remaining units. A bridging loan of £19million GBP was required.
The developer had run over on their build schedule and hence required a refinance whilstthe scheme was only partly complete (80%). This was also the first luxury/high-end schemethe developer had attempted – and by far the largest.
Problems To Solve
The major challenge on this deal was finding a lender who could get comfortable withlending on a partially completed residential development. We had to present a clear andconcise exit and marketing plan to the lender whilst ensuring a strong valuation report wouldgive them additional comfort.
Through our in depth knowledge of the UK bridging market, we were able to put together thefollowing solution for our clients.
Bridging Loan of £19 million GBP (Gross)
Rate 0.75% per month
Term 12 Months
Max 73% LTV
15% Personal Guarantee