Throughout 2023, Signature Property Finance has demonstrated its commitment to supporting developers through the provision of much-needed loans on terms that benefit the client and the unique needs and requirements of the project.
This ability to tailor a deal’s terms, whilst ensuring lending decisions are reached quickly has been a key factor in the growth and success of the business in recent months, as clients welcome the professionalism and efficiency shown throughout the process.
Once again, this was seen to be the case after the business agreed to support a London-based developer with the acquisition and refurbishment of a two-bedroom, mid-terraced house. Having been acquired at a property auction for £49,000, the developer saw an opportunity to renovate and refinance, given the strong demand for affordable housing across the UK.
As such, the developer requested a gross loan of £55,843 to complete the light refurbishment – work that would be undertaken by a local contractor that the client had already sourced.
Through an independent valuation of the property, a GDV of £80,000 was confirmed, although given the client’s experience of completing similar developments, there was confidence that a higher value could be achieved. A comparative analysis of similar properties supported this notion too, with prices varying from £72,500 to £97,000.
With the project’s potential clear to see, Signature moved forward and completed all the necessary background and credit checks to ensure the outlined exit route could be followed – this would involve the property being refinanced once the refurbishment was completed.
Based on the details provided, Signature agreed to provide the full refurbishment loan of £55,843 on a 12-month loan term, as this would give the experienced client more than enough time to complete the outstanding works. The structure of the loan was also tailored in a way that satisfied the client’s needs and project’s deadlines.
Bob Stones, Relationship Manager at Signature Property Finance, commented:
“As part of our ongoing commitment to addressing the UK’s housing crisis, we are always looking to support clients that are passionate about completing developments.
“There is no deal too big or small, as long as the vision of the project is clear to see and the plan on how to achieve it has been carefully thought through, then we are right behind those developers that need our support.
“Of course, it becomes a lot easier to make quick lending decisions when the individual or business has a proven track record of completing similar projects, and that was definitely the case here. Having overseen a number of renovations in the past, we felt confident that the client would achieve their targets with the right support.
“With that in mind, we are pleased to have assisted on this specific project and hopefully this marks the beginning of a long and healthy relationship with the client.”
The developer added:
“From the outset, Signature’s keen eye for detail and willingness to go above and beyond was clear to see – they have been supportive throughout the process and a pleasure to work with.
“It can be difficult to find a short-term property finance that effectively blends efficiency and quality, but Signature have shown that to be the case here. They’ve left no stone unturned throughout and helped agree a deal on terms that worked for the project.
“For this reason, I’d highly recommend their services to any other developer that finds themselves in a similar position and requires support.”