A property developer contacts their broker to find out what finance options are available to them following the completion of an 18 apartment block in South London. The purpose-built development is comprised of two and three-bed units, six of which have already been sold, subject to contract.
Whilst waiting for the other units to sell, the client needs to pay off their existing £9 million development finance loan. The client feels pressured into extending the loan, meaning they’d have to pay another expensive arrangement fee.
Due to the size of the loan, the case is referred to our Transactional Credit Committee to provide an indication as to whether the application would be accepted. The client has a portfolio of properties worth £24 million and a strong credit profile, so we’re able to offer them the development exit finance they need, giving them valuable breathing space to find buyers for the remaining 12 apartments.