UTB’s borrower is a filmmaker turned property developer who has completed several refurbishments and is an existing UTB customer.
The borrower had purchased a bungalow in 2017 with planning permission for the demolition of the existing building and the construction of a pair of 3-bedroom semi-detached houses. The applicant was using their own funds and loans from their other businesses to build the houses to weather tight stage and would borrow whatever extra money they needed to complete the scheme.
UTB was approached for funding when the internal walls were being constructed with works including 1st and 2nd fixes, installing the kitchens and bathrooms and landscaping of the gardens outstanding. The borrower also wished to use some of the facility to repay the loans they had taken from their other businesses to reach this stage.
Being asked to fund a project part-way through always poses challenges in terms of evaluating the quality of the work done, but we were satisfied with the evidence provided in respect of planning permission and any building control inspections carried out, together with the comments of the valuer.
The estimated time to complete the remaining works was approximately
4 months, with the 12-month facility requested providing ample time to finish the works and achieve sales to repay the loan.
Our customer returned to us because they wanted the reliability of an established, experienced lender knowing that the funds would be available as and when they needed them. They will earn a healthy profit from the scheme which should be completed by the end of the year.
|Loan Type||Bridging / Improvement Loan|
|Project Type||• Completion of a small development of two semi-detached houses|
• Funds to settle loans from developer’s other businesses already invested in the project
|Special Features||• Returning customer requiring timely competitive funding to complete a project and move on|
• New build properties in shell condition when UTB was approached for funding