Experienced short-term property finance providers understand the unique pressures and expectations that all developers face, whether it be sticking to strict budget requirements or ensuring project deadlines are met.
It is for this reason that Signature Property Finance continue to attract high-profile clients that are in the process of delivering sizable developments, as there is a strong confidence in our ability to agree deals on suitable terms, without any unnecessary disruptions or delays.
This was recently demonstrated as an experienced client, with a proven track record of delivering largescale projects, approached Signature for funding to complete the development of six residential flats at an old church site.
Having previously secured planning consent to develop the church and hall, the client had already completed works costing £477,200, with the remainder of the development expected to total £644,300 – finance they needed Signature to provide.
As part of the proposal, Signature would advance £86,000 to reimburse the client for funds expended to date, before providing stage drawdowns of the remaining development costs. As such, a gross loan amount of £835,000 was required by the client, which after careful inspection, was deemed to be within Signature’s policy.
With an estimated GDV of £1,390,000 and a strong demand for affordable housing, there was a clear opportunity for the client to make a healthy profit on the much-needed development, which included five two-bedroom flats and a single one-bedroom flat.
The site’s strong transport links and wide range of local amenities meant the properties were expected to sell quickly, especially given their fair market prices which had been estimated through a comparative analysis of similar properties nearby.
Before finalising the deal, Signature completed all the necessary background and credit checks to ensure the developer could deliver on its promises and follow the proposed exit route, which was the eventual sale of the completed units.
As always, Signature worked alongside the client to agree a suitable loan term that would give them enough time to complete the development and market the properties. In this case, a 12-month loan term was deemed to be sufficient and the client was more than happy to accept.
Alan Coats, Lending Manager at Signature Property Finance, commented:
“For a project of this size to be delivered as intended, it was vital that both parties moved quickly to secure a deal on suitable and mutually beneficial terms.
Given that a large amount of the work had already been completed, there was an obvious need for efficient decision making so that deadlines would not be missed and the eventual sale of the properties would not be stalled.
This is where the experience of our in-house team can really make all the difference, as we work quickly to understand the client’s vision, leaving no stone unturned in our commitment to identifying the best possible solution.
Of course, this process becomes much easier when supporting an experienced developer with a proven track record, and as such, we are very much looking forward to working alongside them in the months ahead.”
Mark Reidy, of Concept Financial Group, who introduced the opportunity added:
“Having worked with Signature many times before, we were confident they could provide the necessary finance on terms that benefited the client.
They are very experienced and have a deep understanding of the unique pressures and challenges attached to developments of the size. As such, they have worked efficiently throughout the process, ensuring important deadlines are not missed.
Having delivered with Alan on multiple other projects in recent years, he and Signature ticked all the boxes, as their flexibility, speed and doing that they say they will has allowed us to secure a flexible solution so that the borrower can complete the project as per their cashflow.
I would recommend Signature without hesitation for projects where their product represents a strong fit for the borrower and their project.”