A £530,000 bridging loan is being used to complete a property development project
A returning client, a former entrepreneur turned full time serial property developer who has completed multiple renovations, required a £530,000 bridging loan facility to complete a property development in Gloucester.
In early 2019, the client purchased two bungalows and after several months obtained planning permission to demolish the current structures and build four separate 4-bedroom properties. The applicant had used their own money to get to the stage where the four dwellings were weathertight but had not yet been fitted out.
Changes to their circumstances during the pandemic meant that they no longer had the funds they had allocated to the next phase of their development. On top of this there had been issues sourcing the trades to complete the work as the original main contractor who had been project managing the development had now gone into liquidation.
When stepping in to fund a project halfway through, it's difficult to assess the quality of the work, but satisfied with the planning approval, building control inspections conducted, as well as our valuer's comments we were able to source the finance the client needed.
Whilst the remaining works were expected to take approximately 6 months to complete, the client opted for a 14-month facility allowing adequate time to complete, market and sell the houses in order to repay the loan.
Like many of our clients, they came back to us because they sought the assurance that money would be there when they needed it and in development it pays to have a reliable funder in the side lines should the project timeline not meet original expectations.