Experienced developers demand efficiency, as there is a risk that opportunities will be lost or delayed if decisions are not made quickly. This means securing much-needed funds within the strict time and budget requirements that have been outlined – a requirement that some short-term property finance providers find difficult to achieve.
However, Signature’s extensive industry experience combined with their longstanding commitment to help address the UK’s housing crisis allows them to support developers without interfering with important deadlines.
This was recently demonstrated as they provided a substantial gross development loan of £380,151 to build a five-bedroom detached house over four stories – a project that would be self-managed by the client, using their own building contractors and tradesmen.
The site itself was acquired in the 1970’s, with planning consent obtained and footings commenced in 2004. Since then, planning has been reconfirmed and the existing footings will be removed and replaced as part of the new build.
To proceed with the project, Signature consulted the client and conducted the necessary background and credit checks to ensure the applicants could execute the scheme and repay the loan through the proposed exit route.
Once satisfied, Signature agreed to provide the funds on a 20-month term, which would allow 14 months for construction and 6 months to secure its sale.
Property in ‘high demand’
Located in a small village in the Yorkshire Dales, the proposed house would provide accommodation on the lower ground, ground, first and attic floors, with an attached double garage also part of the plans.
The ground floor would feature a kitchen, dining room, hall and lounge, with a lower ground floor/cellar opening at the rear to provide a sun/garden lounge reception area. Three of the five bedrooms will be located on the first floor with the remaining two located in the attic.
With panoramic views, the property will utilise local materials including natural stone walls and timber framed windows, making it a highly sought-after residential property that is within walking distance of local amenities.
Given the client’s extensive development experience and success with other projects, Signature were confident in their ability to carry out the required works and repay the loan by following the proposed exit strategy.
Bob Stones, Relationship Manager at Signature Property Finance, commented: “There is an expectation amongst experienced property developers that important lending decisions must be made promptly, as any unnecessary delays could prevent projects from going ahead.
“Thankfully, the combined expertise of our team enables us to respond quickly to requests, tailoring the terms of a deal to meet the unique needs and requirements of the client.
“Of course, it helps when the client has ample development experience, as this allows background and credit checks to be completed swiftly, with confidence in the expertise of those delivering the scheme. And this this project, allows the developer to add another valuable asset to their portfolio.”
The developer added: “To build on the growth and success we have enjoyed in recent years, it is vital that we work alongside short-term property finance providers who have an in-depth understanding of the market and the needs of developers.
“After meeting with Signature, we were confident that they understood the vision of the project and could work quickly to deliver the loan on terms that matched the deadlines outlined. For this reason, I would recommend their services to other developers in need of professional and efficient support.”