Signature Property Finance provided experienced property developers operating an SPV used to acquire and build out development, funding of £574k to uplift outstanding loan and raise the capital needed to complete remaining property works.
“What you want from an alternative lender is for them to plug the gap created by the lack of desire to lend from the high street, on anything but the very simplest deal. If a project is more complicated and requires a little imagination to understand our position, then Tony and his team at Signature fit the bill perfectly. They listened and worked closely with us, ensuring we had the funding in place to complete what we’d started and the fact they’re a friendly, approachable bunch just added to what was ultimately a quick, pleasant process.”
Property Developer in Lancashire
Understanding the ambition
An experienced property developer well-known to our team, needed support to complete the new development of 21 units in the Shropshire village of Cleobury Mortimer, a rural location between the market towns of Ludlow and Kidderminster
The development is a mix of 2-bedroom bungalows, 3-bedroom three storey and two storey houses, with 15 units already sold and the remaining 6 in the latter stages of completion, with the cost of works expected to be £120k.
A tricky project to understand from just application forms, a site visit by one of the Signature lending team demonstrated our experience of every aspect of property development, knowing what it takes from both sides to get the deal done, against the client’s schedule.
A Signature solution
The developer had put together an experienced team, with the entire project being managed by another property developer we had worked with before, which only adds to the confidence instilled in us that this was a capable team, delivering a viable project.
Our funding allowed the developer to redeem the existing development loan, whilst injecting funds into the project to ensure all works were completed on time and to the same high-quality as those already completed.
The loan required equated to satisfactory LTV against the OMV at the time and comfortably met our criteria against the gross development value, which would only be enhanced by the completion of the remaining units.
One of the few alternative lenders with a good knowledge of the markets outside the big cities and development hotspots, we were happy to support this development team, agreeing a £574k loan for 6-months, which allowed sufficient time to complete and sell theses 6 properties.
The all-important exit route would see all properties sold, two were under offer at the time, or thanks to the developer’s experience, refinancing the remaining properties on to buy-to-let mortgage would prove no problem.
“Sometimes it’s easy to assess every deal in terms of numbers, percentages and risk profiles, but this project demonstrates, Signature is a business that values the relationships it builds with developers. Sometimes as a funder you just have to get out on site and understand the developer’s vision. It also helps working with professional developers who know what they need to provide at the start of the application process to ensure they get the funds they need, when they need them – it really is a two-way street.”
Tony Gilbertson – CEO Signature Property Finance