In years gone by, Signature Property Finance has built a strong reputation for its ability to develop productive relationships with experienced developers, utilising its expertise and knowledge of the property market to make a positive first impression and lay the foundations for future engagements to evolve.

This willingness to go above and beyond for clients, processing deals both efficiently and professionally so that mutually beneficial outcomes can be reached has been essential to the business’ long-term success, as clients feel confident in their ability to provide timely support. The concept is simple yet effective – successfully complete the first project without the occurrence of issues and new opportunities will follow.

This was recently demonstrated through Signature’s involvement with an established Scottish developer, in which they provided short-term property finance on two separate deals – the first entailing a refurbishment loan of £195,679 and the second a residential bridging loan to the tune of £93,750.

In the first deal, the client had identified an opportunity to refurbish an old office building into a three-bedroom flat, with a view to sell the property for an estimated GDV of £325,000. The project costs comprised of the £172,500 purchase price and refurbishment works totalling £60,000, all of which the client would manage during an eight-month build phase with the help of highly experienced contractors.

As such, a 12-month loan term was deemed to be sufficient time for the refurbishment to be completed and the property sold – a primary exit route described as being robust following a detailed analysis of the project’s scope. To further strengthen the deal, a secondary and equally as robust source of repayment was also established as the refinance of the property onto a BTL facility.

From the very outset, it was clear that there was a lot of long-term potential to be explored, with the client already planning a series of new developments in the next three to five years. Fortunately, the success of this initial engagement allowed this potential to be unlocked as negotiations on the second project commenced in the following months.

For the second project, the client required a £93,750 bridging loan to purchase and refurbish a top floor flat in a highly popular tourist village located in the Scottish Highlands. Similar to the first project, a 12-month loan term was requested although the build phase was only expected to take five months, allowing the client seven months to market and sell the property.

Through a comparative analysis of similar sized, recently sold properties in the nearby area, an average sales price of £179,897 was expected to be achieved, with a top end sales price reaching £305,000. As such, the development represented yet another important opportunity for profit and growth, with Signature wasting no time in conducting the necessary background and credit checks to confirm the project’s feasibility.

Of course, the credentials of the client had already been checked and approved during the previous engagement which allowed the process to run smoothly. Equally, the client’s confidence and trust in Signature’s ability to execute the deal gave the second project added momentum, ensuring there were no unnecessary delays throughout.

Commenting on the success of both projects, Relationship Manager at Signature Property Finance, Scott McClymont said:

“There’s nothing more rewarding than to build a productive relationship with one of the country’s most ambitious new to market property developers, as it helps pave the way for the consistent delivery of much-needed developments, providing affordable housing to those who need it most.

“Since the first time meeting the client, their passion was evident and was reinforced by a proven track record of high-profile developments of varying sizes. Once we’d taken the time to sit and discuss their plans, we could sense a real opportunity to develop a strong working relationship, as evidenced by the completion of two successful projects.

“Of course, the experience and professionalism shown by the client also gave the relationship a great chance of success, as we too felt confident in their capabilities from the very outset, allowing us to fully endorse each and every proposal.

“As such, we are very much looking forward to collaborating on more projects in the future – it’s clear that we work very well together so the future looks very bright indeed.”

The developer added:

“Two successful projects later and we already seeing the potential that can be unlocked through the development of a healthy provider-client relationship, as we are able to operate with a freedom and security that allows developments to be completed promptly so that new opportunities can begin.

“Fortunately, Signature blend principles of efficiency and professionalism with complete ease, ensuring every deal is handled appropriately so that opportunities are not put at risk. This has been a big part of the experience thus far and a key reason why we’ll continue to work with Scott and his team in the near future.”