Competitive pre-planning bridge finance
What was the situation?
A developer had exchanged on some land with a deferred completion. The intention was to secure planning permission and then shortly after complete with development finance. The plan was to demolish the existing building and build four houses. Planning was declined for four houses and now approved for three houses.
Gross Development Value (GDV): £3.9 million
Funding agreed to 70% GDV for the development facility
What was the issue?
Planning was declined, but we had already exchanged.
What was the process?
We had to complete on the purchase to avoid losing the deposit paid on exchange and then rework the planning permission giving the comments from the planning officer.
What was the solution?
The development finance lender was a family office who was flexible and charged normal development finance rates for a pre-planning acquisition loan. Once planning was approved this was then converted to a development loan. The major benefits were:
- Low interest rate;
- No additional valuation;
- No additional legal fees;
- Arrangement fee was only charged on the additional loan and therefore not charged twice on the land loan as long as the development facility was deployed within six months.
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As a returning customer, I would like to express my sincere thanks to the team for their outstanding support during the completion of my property purchase. In particular, Catherine and Darren have been incredibly helpful throughout the process. Their communication, professionalism, and customer service have been absolutely excellent, making the entire experience smooth and reassuring. Many thanks again for all your hard work.
My fiancée and I were recommended to LDN Finance when we started our mortgage journey, and the service we have received, and continue to receive, has been outstanding throughout. Phil Levesley initially looked after us and made what can be a very daunting process feel straightforward and easy to understand. He took the time to explain everything clearly, never rushed us, and was always happy to answer any questions we had. Nothing ever felt like too much trouble. As part of the process, we also wanted to explore a number of protection policies, and Phil introduced us to his colleague,
Owen was absolutely amazing and supported me every step of the way throughout the mortgage process. He was always clear, patient, and incredibly reassuring, making what could have been a stressful experience feel smooth and manageable. Bharathy was also really helpful, promptly getting in touch and making sure all the relevant information was handled efficiently. I couldn’t be happier with the service and would highly recommend them both. Five stars without hesitation.
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