UTB rescues client with undervalued site

UTB rescues client with undervalued site



United Trust Bank has helped a client who had a major residential development site undervalued, restricting them from much needed funding….


United Trust Bank has helped a client who had a major residential development site undervalued, restricting them from much needed funding.

Case study fact file:

Loan amount: £1,900,000
Loan to value: 60%
Location: East Sussex
Type of development: 11 family homes

United Trust Bank (UTB) was approached by a long-standing development finance introducer in order to help a new customer who had an East Sussex development site valued below their expectations.

As a result of this, their existing high street lender lowered their offer of funding, which restricted the client’s ability to acquire a further site on which they had already made an offer.

The reduced funding offer therefore held back their growth plans.

The site in question had planning consent for 11 family homes and whilst it bordered an industrial park, UTB felt that the proposed houses would be in demand by fulfilling a local need.

After confirming the developer’s track record, and his experience as a contractor, UTB was happy to extend terms to 60 per cent of the projected GDV.

As a result, this offer released an additional £300,000 which the client has utilised towards the purchase of a further development site which they are proposing to work through planning.

This scheme is set to provide sensibly priced homes with wide market appeal, as well as a 10-year building warranty.

The development is exoected to be popular with local buyers due to the homes being situated close to good local schools and the growth of the town centre.

 



Leave a comment