The case in brief
- Finance needed to buy site without planning permission
- Bridging finance for development site purchase
- Converted to development finance
- 90% LTC product
When a developer is presented with an excellent opportunity, the ability to move fast is important. But without pre-existing planning permission on a site, it can be almost impossible to secure the right development finance. Fortunately – as this case study demonstrates – it’s possible to overcome these barriers, taking out bridging finance for development site purchase and then refinancing as required.
Our client
The Articus Finance team regularly works with experienced developers carrying out complex, high-value projects. Our client in this instance was a UK developer looking to convert an old office block into residential flats. The site was currently valued at £5 million, but after expected build costs of £10 million, the developer expected a very strong profit with a GDV of £26 million.
However, there was a hurdle in the way. Our client needed to move quickly to secure the project – but the site did not currently have planning permission, meaning our client was unable to secure development finance. Since securing the relevant permissions can be a matter of weeks or even months, our client needed an interim solution to proceed with the purchase, ensuring they didn’t miss out on the opportunity at hand.
Our solution
To resolve this, we helped this developer source bridging finance to purchase the site, at 70% LTV. This meant our client was able to proceed with the purchase and with securing the relevant planning permissions.
After this stage had been completed successfully, we were able to convert his bridging loan into an appropriate development product at 90% loan to cost (LTC). This was an excellent outcome for the client, ensuring they were able to take advantage of the fantastic opportunity presented by this project.
Whether you need a fast bridging solution or a dedicated development finance product, our experienced brokers can help. Learn more about our offering.