Customer: Property Developers
Category: Development Finance & Development Exit Finance
Date: August, 2019
Status: Completed
Tags: Development Finance, Development Exit Finance
About the project
Development Exit Finance
Finance For Property Developers
Madison Carter Finance refinanced away from first charge facility to RBS, which is is difficult, especially whilst the project was live. Later a development exit finance product was sourced to releasing equity to help finish the project.
The new houses constitute an enabling package in order to finance the redevelopment of the listed mansion house which, when the developer purchased the site, was on English Heritage’s at-risk register.
Gaynes Park is a new luxury development of five new build modern houses along with seven apartments in the Grade II* listed Gaynes Park Mansion, positioned behind a gated development of 22 acres located in the green belt near to the town of Epping in Essex.
Bridging Loan For Property Development
Property Development
Once the project was completed the property developer required further funding whilst two of the houses were transacting to completion. Madison Carter Finance arranged a bridging loan to fill in the gap.
This was a complex finance deal over time and the scheme is nothing short of breath taking from a development point of view.
A further signal of exquisite work, the design and quality build was one of the developers actually ending up moving into one of the homes.
What we did
We refinanced the client from a principle lender that was underperforming on draw downs and causing issues with the site project time line, at no fault of the property developer. We switched principle lenders mid build which is incredibly difficult to facilitate. The client, is and was, a top tier covenant and we secured funding at 3% above base. At the time, base was 0.5%.
At the back end of the development we refinanced to a development exit loan to pay a business tax bill.
Results
We gave the property developer a solid facility so they could drawn down on time at competitive rates.
We generated a short term loan for a tax bill to be paid as the client was also selling a business at the time.
Are you looking for a similar type of property finance?
As a specialist bridging loan adviser at Madison Carter Finance, I can take a 360 view of your situation and find the right finance solution for you. Book a free telephone consultation with me at a time to suit you.