United Trust Bank was approached by a developer it has worked with several times before to fund their latest project of constructing 12 new apartments on top of existing apartment blocks where he already owned the freehold interest.
Building on the roof of existing buildings is an increasingly common way of extracting additional value from a freehold interest. However the process is not straight forward and relevant experience is vital. In this case our customer had already addressed the following important issues:
- They had undertaken a full structural survey to ensure the building could support the additional weight of the extra apartments
- They had investigated and resolved any potential rights of light issues
- They had secured consent from the building’s leaseholders, many of whom have been living in the building for some time and who may be affected or inconvenienced by the building work
- They had agreed any changes required to the external appearance and upgrading of common parts
- They had found and employed a contractor experienced in this type of construction
With a site visit swiftly arranged and the Bank assured that the developer had completed all of the additional planning required as well as the usual preparations needed for a 12 apartment project, the funding was agreed and the build is now moving ahead as planned.
Loan facility – £2m