United Trust Bank (UTB) were approached by a client they had previously assisted to support two phased developments of contemporary homes on the edge of the Cotswolds. The borrower had acquired the sites a few years ago at an advantageous price and subsequently invested a considerable amount of their time and money in securing the planning approvals and discharging the pre-commencement conditions. One of the sites was also originally subject to a substantial overage agreement which the borrower had negotiated down, enhancing the land value.
The first development of twenty 4 & 5 bedroomed homes was divided into two phases of 13 and 7 units with UTB providing a £9.3m development loan based on the £12.3m GDV of the 13 units in phase 1 and the residual land value of £2.1m for phase 2.
The second scheme of eleven 3 – 5 bedroomed homes has been divided into two phases of 3 and 8 units. UTB is providing £3.6m of funding supporting two new builds and one conversion in phase 1 with a combined GDV of c£3m and residual land value of £2.8m for phase 2.
A clear understanding of how both schemes would be delivered covering both the construction and sales strategy was required to structure both loans. Both developments are now underway.
| Borrower | Housebuilder |
| Amount | £12.9 million |
| Loan Type | Development Finance |
| LTV | 65% |
| Term | 24 months |
| Location | South-West |
| Loan Purpose | Two new build housing projects completed over two phases |
| Special Feature | Phased Construction Self-Build |