We were approached by an established developer to fund the purchase and development of a former London commercial building which was to be converted into flats. The client had exchanged contracts at auction and had 4 weeks to complete the purchase. A site visit and inspection of the clients’ previous developments was quickly arranged and credit approval for £2m of funding followed soon after. The offer was accepted and United Trust Bank’s professionals worked together to ensure the tight deadline would be met.
The project was not straight forward. The scheme had a number of rights of light and party wall issues which, with the assistance of our advisors, we were able to take a practical view on and satisfy ourselves that all was in order. The building was also occupied by squatters and whilst the purchase contract provided for vacant possession and came with the required court order for the squatters to vacate, it was still essential for the both the client and the Bank that they vacated prior to funds being advanced.
On the day of completion an inspection was made, the squatters had moved out and funds were transferred to complete the purchase. The developer is now on site and building.
Loan amount £2m – 55% of GDV