The Ask
Our broker introduced a first-time developer who needed £358,000 to fund a ground-up development. She owned land next to her main residence with planning already approved for a new house. As both properties sat on a single title with an existing first charge, she needed to redeem that charge and raise the funds to begin construction.
The Challenge
The complication came from the first charge lender, who would not allow the titles to be split. To keep things moving quickly, we agreed to redeem the first charge so that the titles could be split during the term of our loan, allowing the client to redeem each security separately.
While not unusual for development funding, this detail added complexity and required a flexible approach.
The Fix
As a first-time developer, having the reassurance of flexibility was crucial. We provided a £358,000 ground-up development loan at 1.24% per month, completing in just seven weeks from terms to drawdown. To give the client maximum flexibility, we structured the facility with no ERCs and a flexible drawdown schedule funded in arrears, supported by MS reports.
The Benefit
The client was able to redeem their existing first charge and, with no mortgage payments for 12 months, gained the peace of mind that their build costs were fully funded.
Timing was also critical. With the contractor already booked and the opportunity to begin work in warm, dry weather, the case was highly time sensitive. Completing everything in seven weeks, a week ahead of schedule, gave the client confidence and allowed them to start the build without delay.
If your client needs a mortgage solution that tackles debt consolidation, credit arrears and capital raising all in one, get in touch with the Masthaven Finance team today – we’re ready when you are.
