The developer – who was working on a project in Bristol – intended to use it as a retirement plan, but the bridging lender pulled the plug on the project halfway through the build programme.
Regentsmead was approached by the developer, Matt, via an introducer after he became extremely concerned that he would lose all four new-build properties.
The lender provided a £325,000 loan to help refinance the existing lender and complete the project to a gross development value (GDV) of £780,000.
The developer’s four new builds in Bristol
“When we first met Matt, he was distraught,” said Ashley Ilsen, head of lending at Regentsmead.
“The purpose of this development was so that he could retire.”
However, Matt was no longer sure that this was how it would turn out.
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Despite having already put £240,000 into four new-build terraced houses, the developer was feeling the strain from the existing lender.
“Thankfully he found a vastly experienced broker who recognised that specialist development knowledge was required,” explained Ashley.
“We managed to turn around legals within a matter of weeks and ensure that Matt’s pension was saved.
“He is now the proud owner of four terrific properties in the heart of Bristol and – as a result of some strong property growth in the area – the GDV is now substantially more than when our surveyor first visited the property.”
A before and after look
Richard Holland – the introducer of the loan – said he was delighted for Matt, who had put his heart and soul into the project.
“I was able to negotiate an exit on behalf of my client with the existing lender and [then] go out to the market to find the best refinance terms.
“Having dealt with Regentsmead for some time, I was able to negotiate a good deal for Matt, and Regentsmead arranged the funding very quickly and efficiently to save the scheme.”