Location: Sennen, Cornwall

Loan Amount: £540,000

Finance Category: Development Finance

The Story

Cornwall is one of the most beautiful parts of the UK, and Fox Davidson have a strong presence in Cornwall.

We have worked on large development schemes in Newquay, down to smaller schemes, such as this, in Sennen.

The client was recommended to us by a builder in Cornwall, whom we have worked with on a few occasions.

The client had purchased a site, with planning, during the Covid-19 lockdown – a single unit to be used by the client as their main residence in due course.

The Challenge

Interestingly, the client purchased the land with planning, then had concerns about financing the build.

As our client intended to live in the property, this technically made it a regulated loan, as the property wouldn’t be sold, but would, in fact, be lived in.

The market for regulated development finance is considerably less than the market for regular development finance.

Furthermore, our client had no experience in building property previously.

The site was located near the ‘millionaires’ row’, the design and finishes were bespoke, pushing the £ per square foot in the area.

The Solution

We contacted several specialised local lenders based in the South West.

They were able to lend on the basis the loan would be repaid from the sale of their current main residence and were able to lend on regulated mortgage contracts.

The funds were loaned to the client in monthly drawdowns and the lender appointed a third-party project manager and a QS to ensure the build went to plan in term of both cost and timescales.

Securing development finance in Cornwall for this client was certainly tricky, given the situation, but we delivered the funds needed and the client now has a beautiful property in Cornwall with spectacular sea views.

 

Fox Davidson

Fox Davidson are a leading broker of property development finance in Cornwall. With offices in Exeter, we secure development finance across the South West of the UK. We secure Cornwall development finance from £300,000 and typically up to £200 million for large multi-unit residential and commercial schemes. Funding is secured using senior debt finance, mezzanine and equity pieces, sometimes up to 100% of costs.

For property development finance, please email enquiry@foxdavidson.co.uk or call us on 0117 989 7950.