The property developer required the funds to carry out the construction of five three-bedroom terraced houses under the approved planning permissions.
As work on the site had already commenced, the borrower needed a quick turnaround in order to prevent construction delays.
Blackfinch was able to review the building documents and coordinated with both the borrower and its internal legal team to reach a mutually beneficial solution.
This included ensuring the joint contracts tribunal agreement sufficiently protected the borrower and, by extension, Blackfinch, by stipulating the contractor carries adequate risk throughout the build.
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The £2.1m facility was agreed at 60% LTGDV on a 15-month loan term.
“We are pleased to have been able to assist this borrower with their first large-scale development, which will provide high-spec residential housing in a highly sought after town in the South West of England,” said Ian Ford, investment manager at Blackfinch (pictured above).
“The transaction required a quick turnaround, as well as overcoming a number of legal and commercial hurdles.
“Overcoming those not only provided us with comfort on the transaction, but also gave the borrower better protection.
“Hopefully this will be the start of a long-term relationship with the borrower.”