What was the situation?
My client, a highly experienced developer with a long-standing relationship with LDN Finance, was in need of bridging finance at high leverage at 90% purchase price on a site which was offices and workspaces, but in need of redevelopment.
This property was a below market value purchase where we needed a lender to focus on the value and the potential uplift through planning rather than the purchase price. They would then secure planning and the exit would be development finance.
What was the issue?
A challenge that some borrowers face when looking for lenders to secure funding against commercial assets with residential planning potential, is the leverage. Often, lenders feel more confident in a lower LTV or LTPP application, however there are lenders in the market that understand how the current value can be viewed with hope value for planning and therefore it is worth more than a straight forward commercial building.
What was the process?
At LDN Finance we have access to a range of funding partners, from high street and private banks to independent funders. I therefore knew exactly the lender that would be most suitable for this who I was certain would be able to help develop a very strong relationship with the client by providing finance.
As a small lender, it was imperative that all parties could be trusted to deliver and help create a prosperous, long-term relationship. Through negotiating the highest leverage possible, pushing the lender on providing a rate that was no higher than any of the other lenders in the market, provided an excellent funding package for the client which ticked every box they were looking for.
What was the solution?
I was delighted to deliver on the client’s expectation, completing on the exact date we planned at circa 90% purchase price with a competitive rate. Also, a new relationship was forged between the lender and the developer. Both are excited about working together on the first of many deals!
Lending solutions with LDN Finance
Are you exploring your options for development finance? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.
We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.
Get in touch with us to organise an initial consultation.