One of the most significant benefits of working alongside an experienced short-term property finance provider is their ability to agree loans on mutually beneficial terms, allowing deals to progress without unnecessary delays.

Without this, projects with plenty of promise and potential can quickly become unfeasible, causing opportunities to be lost altogether at a time when the UK’s housing crisis continues to create issues for those seeking affordable housing.

With this in mind, Signature recently utilised its knowledge and expertise to support an experienced developer looking to purchase, refurbish and refinance a property in Littlehampton.

With an extensive rental property portfolio worth approximately £1.1 million, the client has a proven track record of completing residential refurbishments and was keen to retain the subject property as an investment, whilst renting it out to a suitable tenant.

The first floor, one-bedroom property was already in a good state of repair, but given its large and spacious rooms, the client sensed an opportunity to reconfigure it into a two-bedroom layout – a move that would add value quickly and profitably.

This work would be carried out by the client using a small team of regular tradesmen at an estimated cost of around £20,000. Given that a £150,000 purchase price had been set, the £190,000 GDV estimation meant there was a healthy profit to be made by the developer upon completion.

As such, they requested a gross loan of £132,983 – a sum that would be used to purchase and refurbish the property within the project’s strict time and budget requirements.

To ensure a successful delivery, Signature conducted the necessary background and credit checks, and once they were satisfied with the analysis and findings, they agreed to provide the short-term development loan on a nine-month term. This would give the client three months to complete the renovation and six months to refinance onto a term facility.

Of course, the developer’s experience of completing similar size/complexity projects, gave Signature further confidence to proceed with the deal, allowing the client to move forward with the purchase and expand their portfolio.

Bob Stones, Relationship Manager at Signature Property Finance, commented: “The success of every deal hinges on speed and efficiency, but this must be balanced with a commitment to agreeing suitable terms.

“Fortunately, our experience and expertise enables us to do both, as we work tirelessly to support clients throughout the process, ensuring they receive the necessary funds without any unwanted strings attached.

“Of course, it becomes much easier to agree mutually beneficial terms when the client has extensive experience of their own, but in any case, our team will always do their best to find the best possible outcome for the client.

“Hopefully this marks the start of a long and successful relationship with the client, as we’d be more than happy to offer our support on other projects in the future.”

The developer added: “From the outset, the entire experience has been a breath of fresh air, as we have been extremely impressed by the professionalism the Signature team have shown throughout the process.

“In this industry, time is always of the essence, so to have a deal agreed on suitable terms in quick turnaround has been a great relief – it allows us to move on to the next stages without unnecessary delays.

“For this reason, I’d highly recommend Signature’s services to any other developers looking for a short-term finance.