United Trust Bank takes a positive view on an undervalued site
United Trust Bank was approached by a long standing introducer to assist a new customer who had recently had a development site in East Sussex valued below their expectations. Their existing high street lender had subsequently reduced their offer of funding and this was restricting the client’s ability to acquire a further site which they had offered on and was thus holding back their growth plans.
The site in question had planning consent for 11 family dwellings and whilst it bordered an industrial park, we felt that the proposed houses would meet a local need. Taking into account the strength of the developer, who is also an experienced contractor, we were able to extend terms to 60% of the projected GDV.
This offer has subsequently released an additional £300k which the client has utilised towards the purchase of a further development site which they now propose to work through planning.
The scheme we are funding will provide sensibly priced houses with wide market appeal offered with a 10 year building warranty. The homes are situated close to good local schools and the expanding town centre and we expect this development to be popular with local buyers.
Loan amount: £1,900,000
Loan to value: 60%