Sometimes the best advice isn't the most obvious route, and this deal is a good example.
The client had land they were looking to build on and needed to raise finance to fund the works. The default route would have been a ground-up development loan against the site itself. Instead, we advised raising against a low-LTV property elsewhere in the client's wider portfolio, releasing cash on materially cheaper terms.
The plan from here is straightforward. Fund the build with the released capital, then mortgage the completed new build once it's up and use those proceeds to repay the bridge.
The benefit for the client is twofold. A cheaper interest rate than a development facility would have carried, and no ongoing asset manager costs on top.
If you're planning a build and want to talk through the funding options, get in touch.
hello@scalepropertyfinance.co.uk
0117 427 4568
