This will be used to build two four-bedroom semi-detached homes in Upminster which have a projected GDV of £1.75m.

The facility was structured at a 13% LTV against the £195,000 market value of the land on day one, and 70% LTGDV against the scheme's gross development value, with rolled interest across an 18-month term comprising 12 months of construction and six months for sale or refinance.

Full planning permission has already been secured and the scheme will be delivered on a self-build basis through REA Construction.

Lendhub structured the facility to fund all of the construction costs against the land equity, with drawdowns calibrated to the build programme and monitoring conditions standard for a development of this size.

The deal was introduced by Nigel Hakkak, director at Cobalt Financial.

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"Development cases tend to be discussed in terms of leverage ratios, but the structure here was driven by what the borrower brought to the table,” said Jack Hoad, relationship associate at Lendhub.

“A clean planning consent, owned land, and a credible PG covenant give a credit team a lot to work with, and the facility was sized to fund the build rather than to stretch the day-one position.

“That's a structure that works for the borrower, the contractor, and the exit lender.”

Nigel added: "The client had everything in place: land, planning, contractor, and the equity and needed a lender who could move on the build funding without re-litigating the underlying case.

“Lendhub engaged with the structure on its own terms and delivered the facility the client needed to start on site."