Our client was a very experienced property developer having carried out a number of projects since 1993. Their last development was carried out in 2008 and since then they had been waiting for the property market to pick up. In mid-2014 they purchased their new project; a two-bedroomed bungalow purchased using cash from previous developments. Our client had obtained planning permission for development to a 5 bed detached house and, since obtaining the permission, they had demolished the bungalow. They were seeking the building costs of £400,000 to assist them with the development.

A first legal charge over the freehold of the cleared building plot, valued at £350,000 and a projected GDV of £1,000,000+ enabled us to arrange finance at a flat rate of 8.5% with interest rolled during the 18 month build and sale. Our client’s proposed to repay funds from the sale of the house in an area which has high demand for such properties was accepted.