Location: Croydon, London
Loan Amount: £1,800,000
Finance Category: Development Finance
A property developer in Croydon approached Fox Davidson because their usual funder had stopped lending during the coronavirus pandemic. They needed to borrow 85% loan to cost and 62% of GDV pre-finance and were finding it difficult to find lending at acceptable rates.
During 2020 the coronavirus pandemic broke and the economy was shaken. Many development finance lenders withdrew lending from the market altogether or reduced their loan to GDV to around 55%/60%. This left many developers without their usual funding lines.
Our client was pushing the lending limits as not only did they require a high loan to cost, wishing only to put in 1% of total build costs but the loan to GDV was also near the top end of lenders appetite.
When the lending market changes the role of a specialised development finance broker becomes even more important. We regularly keep in touch with over 90 plus lenders offering senior debt, mezzanine finance and joint venture solutions for developers. Knowing who was lending during this difficult year ensured we could place the developer with a funder that could meet their funding needs.
We were able to secure finance at 6.25% with the client only putting in 12% of total costs allowing them to keep some savings in their pocket. The funder was pleased with the development and was happy that the units would sell quickly given they were well designed houses with nice gardens, something that was selling very well at the time.
We secure development finance across the UK. We secure finance from £1m and typically up to £25m. To discuss development finance in Croydon or other parts of London do get in touch email email@example.com 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