The Ask
Our broker approached us with clients whose home extension and development works had overrun on both time and cost.
Having already invested around £200,000 into the project, they needed additional time and funding to finish the works, while also redeeming their existing first charge lender before further charges were incurred.
The Challenge
Taking over a development part-way through can be challenging. The works had already been underway for around 12 months, so we hadn’t been involved from the outset and needed to understand exactly what had been completed and whether everything was compliant.
The clients also needed the funds from day one to redeem their existing lender and avoid any further delays to their project.
The Fix
We started by speaking directly with the broker and clients to understand why the project had overrun, how much time they realistically needed to complete the project.
Crucially, the building control reports were provided with the initial application, allowing our underwriting team to review the works already undertaken without losing valuable time.
Masthaven provided a £287,487 day-one advance at 1.04% per month, with a maximum facility of £325,491, against a property valued at £620,000 with a GDV of £775,000.
We were also able to instruct the right surveyor from the outset to assess both the property value and remaining cost of works, removing the need for a separate monitoring surveyor.
The Benefit
With the broker, clients and our team aligned from the start, we could focus on the information and keep the case moving.
The regulated development loan completed in just under four weeks, giving the clients the time and funding needed to finish their project.
If your client needs a lender that can get comfortable with a development already in progress and keep the case moving, get in touch with the Masthaven Finance team today – we’re ready when you are.
If your client needs a regulated development loan, get in touch with the Masthaven Finance team today – we’re ready when you are.