Experienced developers require an effective blend of professionalism and efficiency, ensuring strict deadlines are met without compromising the long-term objectives of the project.
Whilst balancing these two requirements can be challenging, Signature’s experienced in-house team of property specialists have the expertise needed to navigate each deal appropriately, providing tailored support so that each client has the resources needed to ensure a smooth delivery. No matter what the scope of the project may be, Signature’s dedicated team will leave no stone unturned in its efforts to finding a suitable solution – a reputation that has allowed them to enjoy significant growth in recent times.
Again, this proved to be the case after the business was engaged by an experienced construction firm with a strong track record of overseeing domestic developments. In this case, the client requested a loan of £334,963 to develop a five-bedroom property in Gloucestershire, complete with a garage and garden area.
The project costs consisted of a £300,000 purchase price and build costs/professional fees of £500,000, although the client was confident that the desired outcome could be achieved at £450,000. With a GDV of £1 million, the opportunity represented important profit and progression for the client, and the addition of a new build premium gives them confidence of securing up to £1.2 million once marketed.
Having previously delivered a number of similar projects, the client has the capabilities to perform the role of main contractor, with over 50 years of operational experience in the construction sector. With four months of the build phase remaining, a loan term of twelve months was requested, which would give the client enough time to complete the development and achieve a sale.
The project’s full potential was buoyed further following an independent analysis of the local area’s property market, where there was already a strong demand for housing and comparable property prices were close to the GDV estimation of £1 million. Located in a popular village with a range of key amenities nearby, it was clear that there would be strong interest in the property once works were completed.
With this in mind, Signature moved quickly to ensure the client underwent all the necessary background and credit checks, confirming they were in a position to deliver the project and follow the proposed exit strategy – in this case, the eventual sale of the property. To further strengthen the deal, a secondary exit route was also outlined, which would involve the property being refinanced onto a BTL facility.
Once everything had been confirmed, Signature agreed to provide the full loan amount on the loan term requested, working alongside the client to ensure they had the support and backing needed to bring the project to life. Of course, the client’s proven track record made the decision to lend easier, as this was not a project too big or out of the ordinary for the firm.
With more exciting projects lined up throughout 2024 and beyond, this collaboration could mark the start of a long and healthy relationship between the two businesses, with plenty of room for growth on both sides.
Scott McClymont, Relationship Manager at Signature Property Finance, said:
“It’s been a strong start to the year, as we look to build on the momentum generated towards the end of 2023 and establish long-term relationships with developers as part of our wider commitment to addressing the UK’s housing crisis.
“During our initial meetings, we could see their passion for the project which gave us a sense that there was a real long-term opportunity to be explored. Of course, to get things moving in the right direction we first had to ensure this engagement progressed smoothly.
“Our client-centric approach allows us to tailor our support to satisfy the unique needs and requirements of each developer – essentially, the terms and conditions of a deal have been agreed in a way that benefits the client and helps them deliver the project successfully.
“It’s been a productive experience so far and I’m hopeful that the success of this project will mark the beginning of a strong relationship.”
The developer added:
“From the very outset, Signature has operated with a professionalism and efficiency that has made it easy for the development to progress. With no issues or delays to worry about, our team has been able to focus all of its efforts on the planning and construction of the property, which has been a great help.
“We’ve been thoroughly impressed by the level of support they’ve provided throughout – they’re an honest and reliable team that have the expertise to match. We’d highly recommend their services to other developers in need of short-term property finance.”