Location: Horley, Surrey
Loan Amount: £650,000, GDV: £1.2 Million
Finance Category: Development Finance
A new client contacted Fox Davidson as they had reached an agreement to purchase a house with planning for demolition and build of two houses in Surrey.
They had terms already from several lenders but wished to see what we could negotiate on their behalf.
The clients were working together for the first time so did not have a track record of working together but one of the borrowers was a builder and would be carrying out the work himself.
They had been to several banks and had terms at around 7.5% plus arrangement fees.
The challenge then was to find a lender who was happy with their experience but also who would lend at a more competitive rate.
Additionally, the loan was below £1 million, which many lenders shy away from simply due to how busy the market is at present, they (lenders) can afford to be choosy.
Fox Davidson secured a development finance loan at a rate of 6.5% and saved our clients thousands in interest.
We also ensured that the individuals working on the lending were local, in fact, one of the funding managers lived 10 minutes away from the site.
Having funders that are local to the site is helpful when it comes to getting cases agreed at credit.
The fact that the lending was at the lower end of the scale was not an issue, as this was the first of many schemes, and our clients will go on to work with the funder on many more schemes over the coming years.
Fox Davidson are a specialist property development finance broker in London. We secure development finance for Surrey property developers typically borrowing upwards of £1 million with funding lines available to £200 million.
For more information on development finance in London or elsewhere in the UK, please email firstname.lastname@example.org or call us on 0117 989 7950.