Location: Weston-super-Mare, North Somerset
Loan Amount: £920,000
Finance Category: Development Finance
An existing client, a building contractor firm in Somerset, asked Fox Davidson to help them finance a development site in Somerset.
Although our clients had previously built many residential and commercial properties, they had not yet needed to use development finance.
The plot had planning to change it from a single-unit commercial property into five residential houses.
It was currently derelict and in need of urgent development, as it had become an eyesore.
The main challenge for this deal was not in placing the deal, as we had several funders that would lend, but more so with educating the client on the requirements for putting together a lending proposal.
Producing a case for lending is something we are very good at. We provide our own in-house appraisals and have a list of the information we require before we approach any lenders for lending. This saves us from wasting anyone’s time as the pack will answer all questions the lender will have, so they can make a fully informed decision.
Lenders require a development appraisal, a full list of assets and liabilities as well as drawings and planning documents. Helping the client to understand the process and the reason why lenders ask for what they do was the only real challenge in what was otherwise a straightforward development deal. The challenge we set ourselves was to secure finance as cheaply as possible, given that there were several lenders willing to lend.
Using our knowledge of lenders and knowing their current appetite, we placed the funding with a lender with a real presence in the South West. The terms were excellent, and we secured an all-in rate of 6.5% with minimal arrangement fees and exit fees.
When speaking with a client about a development, we look at all aspects of the deal: the client and their experience, the development, the timescales, and the professional contractors involved. We gather all the necessary information and then take the lending to the right development finance company for that development.
Any broker worth their salt will know which development lender is right for each deal and take the loan to them only. By providing the lender with a comprehensive lending proposal, we had terms agreed with a reputable development finance company within 48 hours.
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