The case in brief
- Client: UK Resident & UK Citizen
- Loan type: Development Finance
- Property value (Gross Development Value): £3,300,0000
- Costs: £2,730,000
- Loan Amount: £2,310,000
- Deposit: £420,000
- Profit: £570,000
- LTGDV: 70%
Useful guides related to this case study
Download our Property Development Guide
Download our guide for Buy-To-Let
Our Case
Property development continues to be a popular investment opportunity throughout the UK, offering high returns on investment with accurate predictions. However, finding the right scheme is merely step one. Finding the correct financing and financer is key to ensure high ROI and a smooth project.
We were approached by one of our long standing clients who was looking to invest in a new project in Richmond – South West London.
Our Client
Our client – an entrepreneur, property development being one of their businesses – was looking to leverage on a scheme to increase his ROI as much as possible. The scheme was a demolition of a current warehouse to create 4 4-bed family homes.
Our Solution
Articus Finance is whole of market brokerage and highly experienced in property development finance. Get in touch for further information or to discuss your case.
We secured our client a market leading rate at a high loan to value. The flexibility of the loan made sure that day one our client’s interest was kept to a minimum. – increasing the profitability of the project.
It is paramount to the profitability of the project that any development finance is catered to the project itself. Of course, cheaper financing is important and is usually first on our brokers radar when selecting suitable lenders, however, it is also important that the lender understands the project and is flexible enough to cater for it. Securing financing with a lender who doesn’t have this flexibility or understanding can lead to serious problems during the project – mainly associated with cash flow. Lastly, although your costs rise when borrowing more, this is marginal compared to the reduction in deposit the developer needs to input, therefore increasing ROI.
In conclusion, using a trusted broker when securing financing for your project is of high importance to add to the success of the project.
Contact our expert residential mortgage brokers today to embark on your property finance journey.