UTB Money

UTB supports business couple's development opportunity

United Trust Bank (UTB) has agreed to provide a loan of around £1.4m to assist a couple purchasing land with planning permission for the construction of two new family homes.

The husband and wife team jointly owned a limited company which would be the legal borrower and owner of the land being purchased.

However, the principal security for the loan was the couple’s own family home, a former public house with a substantial garden.

The borrowers had recently obtained planning permission for the redevelopment of this site to include the demolition of the house and the erection of five new detached homes.

This more than doubled the value of the property with the couple releasing some of the increased equity in their home to purchase land with planning consent for two, four-bedroom homes.

The loan — which has an LTV of 48% — would repay the couple’s existing first charge mortgage and fund the site acquisition.

The security provided was a third-party first charge against their current residence, and a first charge over the development site being purchased.

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