Development Loan for Commercial Units
Our client, an Independent Financial Advisor, purchased a piece of land just outside of Peterborough with planning permission for circa 20,000 square feet of commercial buildings.
As this was his first large scale development project, he had agreements in place with a local developer to mitigate the perceived risk of construction.
Phase one of our client's strategy was to build circa 6,000 square feet of units in order to relocate his existing businesses.
Phase two of the strategy was to develop the remaining 14,000 square feet and either sell on or retain as commercial investment units.
The client did not have serviceability from his trading business to use an owner-occupied development loan for phase one so, our team presented the case to our panel of specialist lenders. The case was approved on the grounds of the clear exit strategy presented and a commercial development loan was sourced.
Funding was obtained within seven weeks of instruction at the required level for the client to complete phase one of the project.
The client is now in a fantastic position where he has relocated his business, exited the development loan and has a cost effective debt in place with a High Street lender.
We can now demonstrate to lenders our client's experience gained over the last twelve months when financing phase two of the project. With phase one of the project completing on time and on budget this broadens the selection of lenders available to finance phase two, allowing us to obtain competitive terms for our client.