12:13 PM, 25th February 2013, About 13 years ago 1
Text Size
Categories:
A Property118 reader has shared this story with us – he’s a Property Developer and was struggling to find the right Development finance.
Our reader first contacted us in the Spring of 2012. He was very frustrated at that time as he had an incredible opportunity to acquire a former riverside warehouse and convert it into modern flats. However, his bank was not interested in funding the project and neither were any other banks he approached unless he could put 50% of the money up himself.
John even had a client lined up to buy it from him on completion, a landlord who wanted to buy the units to add to his portfolio.
The Development finance deal in a nutshell was:-
Purchase price £350,000
Development cost £550,000
Agreed sale price £1,410,000
Gross Profit £510,000
John had £180,000 to invest into the project.
We introduced John to our preferred NACFB broker and the deal was completed on the following terms. The same lender is still offering similar terms today.
Initial advance: 50% of purchase price £175,000 (Max 65% is available)
Development finance: 100% of the build costs £550,000
The interest rate charged was 0.83% per month on funds drawn.
No exit fee was charged by the lender
The moral of the story is, don’t give up if you have a project that makes a great business case.
To discuss any commercial deal with our preferred commercial finance broker please use the relevant links below, call us on 01603 489118 or email [email protected]
For Development finance please click here.
For Commercial mortgages please click here.
For Bridging finance please click here.
If you would like to add your own requirements and search for the most popular available Buy to Let products please click here
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Is my letting agent treating me fairly?Next Article
Barnard Marcus Property Auction 14th March 2013
Matthew Dickinson
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since July 2013 - Comments: 18
16:22 PM, 27th February 2013, About 13 years ago
Having now read all the gripes, I didn’t realise until now how lucky I have been with Philip! I have no problems, as Martin and Co. at Newark do absolutely everything for me. That is surely the way that all letting agents ought to be, so may I suggest that a different agent be used. It is easy to change, as your new agent will be delighted to have your custom, and if they are any good your property should always be occupied, as mine is! Don’t put up with shoddy service, you are in the driving seat and deserve the agent to be bending over backwards to please you!