Location: North Yorkshire
Loan Amount: £3,200,000
Finance Category: Development Finance
Fox Davidson is a leading UK development finance broker for CBILS bridging finance.
We work with a handful of lenders that can lend anywhere from £250,000 to £5m under the CBILS scheme.
The client contacted us due to our expertise in this very specific area of property finance.
They had built several blocks of flats in North Yorkshire and were struggling with sales due to the pandemic.
The senior debt funders were due to be repaid in about 6 months’ time.
As with any bridging finance, it is all about the exit.
Due to the pandemic, the sale of flats was a tricky deal for lenders to get comfortable with.
Similar schemes in the area that were further along than this site had seen considerable issues selling their units and had to reduce their prices to gain any traction in sales.
We had to address the risks and find solutions that were acceptable to the lender.
Initially, a second site was cross charged but eventually, sales in that site came through and the loan amount was reduced to an acceptable level that meant the lender was comfortable to lend.
The CBILS bridging loan scheme is useful in that allows developers that have been hit by a slow-down in sales, or delays in construction, to refinance and gain some breathing space to sell the remaining units in the development.
Fox Davidson is an award-winning team of property finance consultants. To discuss your property funding requirements, please email firstname.lastname@example.org or call us on 0117 989 7950.
Director & Property Finance Consultant
About: Wesley has been in the industry for 20 years and has a wealth of knowledge in all areas of property finance. His real passion is working with property developers on the funding of development sites. His work ethos is to constantly gain more knowledge in order to better himself and offer more to clients and to be contactable at all times, this sets him apart from his peers.
Favourite Film: Last of the Mohicans
Quote: “In complete darkness we are all the same, it is only our knowledge and wisdom that separates us. Don’t let your eyes deceive you.” – Fat Controller