What was the situation?
The clients owned a freehold shop and the single flat above it on a main high street in an upcoming London area. They had seen the potential to build a further 2 flats on top of the existing structure. This is often referred to as ‘airspace development’. This would also allow them to gift one of the newly built flats to their son to help him on to the London property ladder.
What was the issue?
With no experience in property development, they were in the dark as to how the process worked and needed a soft touch to help them understand the intricacies of a development project. The challenge of this type of development is that lenders do not find airspace attractive due to the higher risk involved. This, in addition to the clients being first time developers, proved to be a very challenging case.
What was the process?
We met with the clients at the site to understand their plans more closely and the expectations for timings and funding. We then discussed the situation with the most suitable contacts within the development lending and short-term finance market.
What was the solution?
We found their perfect fit with a small independent lender who met with us and the clients at the site to understand the project in full. By meeting and understanding the lender’s approach and commitment to the project, the developer gained considerable comfort and confidence to move forward.
Lending solutions with LDN Finance
Are you struggling to find funding for a development project? At LDN Finance, our team of experts will find the ideal lender for your situation and help to explain how funding the project will work. Get in touch with us today to organise an initial consultation.