Flexible funding enables a two-phase development
An existing customer approached us to consider their next project. This involved the purchase of a site with planning consent for 11 detached executive homes in a rural location in the home counties.
The borrower wanted to divide the project in two, building a first phase of 7 houses. This approach would enable the developer to test the sales market and at the same time explore the possibility of planning enhancements on the remaining land.
United Trust Bank was able to structure a loan to fund 60% of whole site purchase costs and 100% of construction and related professional expenses. This resulted in a facility of £4.1m secured by first phase GDV of £5.7m and second phase site value of £0.9m.Overall the facility equates to 60% of security value.
Loan : £4.1m
GDV : £6.8m
CTV : 60%