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Case Profile
Our client, an experienced property developer, had the opportunity to acquire and develop a site with planning consent for the construction of nine new homes, however, all his capital was tied up in other projects. He was, therefore, facing the prospect of losing the site and missing out on the opportunity and realising the development.
Solution
Using our extensive range of contacts, we were able to introduce the client to a lender prepared to back the deal by funding 100% of costs, including interest roll-up. The lending was structured as a joint venture deal with a combination of debt and equity, the profits to be shared between the client and lender upon completion and sale of the new homes. Thus, our client was able to acquire the site and is now proceeding with the development. Upon completion he will enjoy a share of the profit, which he would otherwise not have been able to earn.
Deal Highlights
| Loan amount: | £1,000,000 |
| Funding: | 100% of all costs |
| Term: | Up to 12 months for construction and sale |
| Structure: | Interest roll up and profit share |
| Loan purpose: | Site acquisition and construction of nine new homes |
Notes
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
largemortgageloans.com is a trading name of largemortgageloans.com Ltd. The Financial Conduct Authority does not regulate some aspects of commercial mortgages or business finance. A fee of up to 1.17% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,925 would be payable on application. The precise amount will depend on your circumstances.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage.
