Client Overview
Our client is an experienced property developer operating in the North West, specialising in small-to-mid scale residential developments. They had successfully completed several projects but were encountering challenges around cash flow – to enable them to move onto their next scheme – and securing competitive funding. We can also assist new property developers with no experience, this cast study takes you through one of our recent successes.
If you have a development project you’re looking to discuss, click here to get in contact with one of our experienced brokers today.
———————————————————————————————————————————————————–
The Challenge
The client identified an opportunity to develop a five-unit residential scheme with a total gross development value (GDV) of approximately £2.4 million.
However, they faced several hurdles:
-
A tight acquisition timeline or risk losing the opportunity
-
A requirement for high leverage funding (70% loan to GDV) whilst they exited another project
-
A unique scheme, meaning it was hard to give an accurate value for the end product
-
A lender who:
- Made fast credit decisions
- Offered competitive pricing
- Is easy to work with
Finding the right development finance lender can be the difference between a profitable project and a non-profitable one. Approaching lenders with proven experience in your specific type of development is crucial to ensuring success. Our development finance page walks you through the various types of projects we have experience brokering and how we can support you at each stage.
—————————————————————————————————————————————————————
The Articus Finance Approach
Articus Finance carried out a full review of the scheme, including:
-
The development appraisal and cash flow
-
Build cost assumptions and contingency planning
-
The client’s track record and previous exits
-
Multiple exit scenarios to strengthen lender confidence
We then structured a tailored funding proposal and approached a shortlist of specialist development lenders suited to the project profile.
—————————————————————————————————————————————————————-
The Solution
Articus Finance secured:
-
Development finance covering 70% of GDV
-
Rolled-up interest to support cash flow
-
A competitive fixed development rate
-
Fast credit decision and completion
The funding was approved and completed within the required timeframe, allowing the client to proceed without delays.
Articus Finance can also assist with development exit finance, allowing you to replace higher-cost development funding with more competitive buy-to-let products. This can be particularly beneficial for clients who are unable to sell all units upon completion.