Silver Oak Capital?
- 300+ Lenders – we have access to the largest network of lenders in the market. This allows us to provide you with independent whole-of-market advice.
- Transparency – with a foundation based on trust, we will ensure you are kept in the loop with which lenders we approach during the course of our process.
- Speed of Service – working with property people makes you realise one thing, time is money. We will endeavour to complete your loan in a quick and efficient manner.
- Long Lasting Relationships – we don’t just arrange a loan on your behalf, we also ensure you have a long term lending partner to work with on future projects.
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Silver Oak Capital:- Property Development Finance
We were approached by a CEO of a London based Wealth Management firm who needed assistance in acquiring a residential development loan in order to completely demolish and rebuild his primary residence located in Surrey. He had obtained full planning to build his dream home on the site and had made arrangements to rent an adjacent property for a period of 18 months during the build period. The build cost amounted to £2 million.
The client had little to no experience in residential property development but had appointed a strong team of architects and contractors to handle the project. As the client had a strong regular income stream via his business he requested that we structure a loan where the interest could be rolled up during the construction period – and subsequently refinance on to regular interest only mortgage facility thereafter.
Problems To Solve
Finding a development finance loan that flipped on to a regular residential mortgage would prove challenging with conventional development lenders as they tend to only operate in the short term market. This called for a creative approach from our team – we henc approached a London-based private bank to structure a deal that would fit this client’s circumstances.
We were able to secure a cheap residential development facility and place the client with a reputable private bank which allowed him to flip the construction loan on to a regular interest only residential mortgage (5 year term) following practical completion of the build.
Residential Development Finance Facility £2 million (Net)
70% Loan to Value (85% Loan to Cost)
Fixed Rate 4.5% per annum
Term 18 months
Interest Rolled Up
No AUM Requiremnt