Signature provides £400k loan for Chepstow developer

Key to the timely delivery of each development is the short-term property finance provider’s professionalism and commitment to building productive relationships with the clients they support.

These are relationships built on trust and efficiency, where the client feels assured in the lender’s ability to make quick decisions, eliminating any possibility of issues throughout the process.

In fact, the demand for reliability and consistency has become increasingly important, with many developers changing who they approach and ultimately work with, as they search for providers with greater experience and a proven track record of overseeing sizable projects.

Signature Property Finance recently discovered this first hand, after a client they had previously supported returned with a new proposition – a decision made following the positive interaction on an earlier development that ultimately had not transpired.

Garden development of real quality

The client, Dillow Developments was keen to build a long-term relationship with Signature, having identified a series of upcoming opportunities, the success of which would hinge on the support of an experienced finance provider.

For this project, the client requested a development loan of £404,022 to develop a four-bedroom detached dormer bungalow in Monmouthshire, with a view to selling the property once completed. The developer purchased the land for £202,500 using a combination of day 1 funding from Signature and his own funds, whilst the remainder would go towards the bungalow’s construction.

Having previously completed several ground-up extensions and heavy refurbishment projects, the client had a reliable team of contractors on-hand to oversee the bungalow’s construction. As such, the plans included the construction of a four-bedroom bungalow with the dormer aspect providing a two-storey accommodation and living quarters on the first floor. Once completed, the property would also benefit from a private driveway and parking, as well as a spacious garden area.

Located in Chepstow, a popular residential area near to the M4 with strong transport links to Bristol, Newport and Cardiff, there was a clear and obvious opportunity for the developer to achieve a profitable outcome – an observation that was further supported by a strong demand in the local housing market and an independent valuation.

Through a comparative analysis of similar sized properties in the nearby area, the GDV of the bungalow was estimated to be £650,000, with its location, setting and finish all accounted for. With this, Signature wasted no time in completing all the necessary background and credit checks, before providing the full amount on a 12-month loan term that would give the client enough time to complete, market and sell the property.

To further strengthen the deal and lay the foundations for future deals and developments to blossom, Signature offered its support at every stage of the process – a commitment that was positively acknowledged by the client, who said this was another important benefit compared to other finance providers they had met with.

Praise for all concerned

Josh Barrett, Associate Relationship Manager at Signature said: “The strong partnership we have formed with the client has been vital to the success of the project, as there is an understanding and trust that allows the entire process to run smoothly.

“On numerous occasions, the client has complimented our hands-on approach and the continuous support we provide, confirming that these are two of the main reasons they want to establish a long-term relationship with Signature, especially considering they have been let down by other finance providers in the past.

“Of course, we judge each project on its own merits and only make lending decisions once we are confident in the vision and feasibility of the project. Therefore, it should come as no surprise that these checks were quickly passed, such are the capabilities of the client to undertake projects of this size.

“I am confident there will be many more to come and I’d like to thank the broker Loui O’Brien, Commercial Manager at Cornerstone finance for the introduction and Jake Corbin the Property Developer, for their continued trust in what we do.

“It was a pleasure to work with him throughout and witness his ability to overcome the various challenges he faced with this project.”

“Since the first day of working with Signature, they have impressed us with their in-depth knowledge of the property market and the professional yet efficient approach.”

Jake Corbin of Dillow Developments commented: “Since the first day of working with Signature, they have impressed us with their in-depth knowledge of the property market and the professional yet efficient approach they take when assessing each project.

The team at Signature, and Josh in particular, have always gone above and beyond what I’d typically expect from a lender, to agree to the funding on suitable terms, making our job a lot easier during the development phase.

“We have built a strong relationship with the entire team and I’m excited to see what the future holds as we continue to grow and undertake new opportunities together.”