The scheme will offer 38 apartments with ground-floor retail space.

The client, Northhold Group, had trouble securing finance from high-street banks due to the complicated property title, with freehold interests held by the local council and title restrictions imposed by Homes England.

The title restrictions culminated in an overage agreement stipulating both overage payments and a pressing construction timescale the borrower was obliged to meet.

The facility was structured to overcome the challenges imposed by the complex property title and overage, and to reduce the likelihood of cashflow squeezes over the course of the development. 

Fiduciam also managed communications with all parties, reaching agreement for the long-stop date to be delayed, providing a more reasonable timeframe for the works to be completed.

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Thanks to the buoyant demand for new-build residential apartments in the Manchester area, which minimised the exit risk for Fiduciam, as well as strong pre-sale interest, the lender was able to provide the £5m loan, agreed at 59% LTGDV on a 24-month term. 

Henry Fisher, portfolio manager at Fiduciam, said: "This was a deal that other lenders were unwilling to lend on because of its complexity, however we work with small- and medium-sized businesses and developers every day and, as a result, we get to truly understand their business models and the risks associated with different developments. 

“This means that we can do more than just lend them the money; in fact, we can also help to guide them through the process.”

Rob Moore, finance director at Northhold Group, commented: “There were complicated elements to this site which had initially proved problematic for the development financing, also owing to the rigidity of the large banks. 

“Then Covid came along, disrupting supply chains, forcing those less well-capitalised suppliers into liquidation, and also threatening a severe reduction of financing options.

“Fiduciam worked closely with us to provide a facility that alleviates cashflow pressures exacerbated by the pandemic. 

“It could see this would be a profitable development, so it went out of its way to overcome the complications and find solutions.”