Keen to build strong working relationships with experienced property developers across the UK, Signature’s services were recently utilised by a Scottish developer with a long-term vision to acquire additional investment properties and expand their existing portfolio.
Already with a range of BTL investments, the developer in question identified a fresh opportunity to widen their interests, leaning on Signature’s in-depth knowledge of the property market to realise their ambitions. Fortunately, Signature’s ethos of providing first-class support without unnecessary delays or disruptions fit the needs of the client, allowing the early stages of the process to run smoothly.
Through their engagement with Signature, the client was confident they would have the means to acquire additional investment properties via a capital raise, and so they submitted a residential asset with a current market value of £400,000, along with full planning permission for two building plots at the site.
The scope of the project was clear – the client required a standard bridging loan of £299,042 secured against the subject asset, with the funds to be utilised as client contribution on their next investment property acquisition. The sale of the subject property, which was given a suggested sales price of £475,000, would then act as the primary exit route for the developer.
Following an independent assessment from an RICS approved valuer, the subject property which comprised a recently refurbished, four-bedroom detached bungalow, was confirmed to have an MV of £435,000. This estimation was supported through a comparative analysis with similar properties, all of which benefited from a full range of local amenities and facilities.
Of course, the demand for affordable housing combined with the client’s experience of investing in and developing properties helped strengthen the deal, giving Signature great confidence that the provision of a standard bridging loan would open the door to new opportunities for growth and success.
After carefully assessing the client’s background and credit history, an agreement was reached to provide the full amount on a 12 month loan term – this would provide enough time for the subject property to be marketed and sold, the proceeds of which would be used to repay the loan.
Given the client’s experience and expertise, Signature sensed a real opportunity to develop an ongoing relationship with the developer, providing support on other residential refurbishment projects in the months and years to come. This allowed the engagement to gather momentum, with Signature’s in-house team of property specialists working quickly to agree a deal on suitable terms.
Scott McClymont, Relationship Manager at Signature Property Finance, commented:
“The entire process has been smooth and efficient from the very outset, which has been helped by the client’s clear vision for the project and their proven track record of overseeing successful developments in years gone by.
“As an experienced short-term property finance provider, we are motivated by the idea of building and developing healthy relationships with passionate developers, and so when there’s an opportunity to do we work tirelessly to ensure the necessary support is provided.
“In doing this, we are able to lay the foundations for a strong relationship built on the principles of trust and reliability – two key components of a productive long-term collaborative effort. This allows the client to feel comfortable in future discussions and confident in our ability to agree deals on suitable terms, encouraging them to reach out when new opportunities arise.
“As such, I’m confident this won’t be the last time we support the developer, especially given their appetite to grow and expand their existing property portfolio – I’m looking forward to seeing what the future holds for everyone involved.”
The developer added:
“Vital to the success of every project is the efficiency and professionalism with which our finance providers operate – we always find the smoothest experiences come from an effective blend of attention to detail and a willingness to agree deals promptly, allowing project deadlines to be met.
“That has certainly been the case here, with Scott and the wider team leaving no stone unturned in their efforts to supporting us. We’ve been thoroughly impressed by their expertise thus far and I’m very much looking forward to collaborating again in the future.”