Town Foot Rise, a residential development in Northumberland, required a well-structured development exit loan. The borrower had fully developed 7 residential properties with 2 already sold. However, to avoid rushing the sale of the remaining 5 properties which could cut in to return on investment, a refinance solution was necessary in the interim. As a result, the borrower needed to find a lender that could act quickly and organise a new deal which would not only enable them to tie up their existing financial obligations but also provide much-needed breathing room.

A £2.3m loan was structured at 75% LTV over a 6-month term, providing the borrower with the funds required to repay the existing development facility from another lender. This gave the borrower time to complete the development and sell the properties without impending financial pressure.

Given the loan amount and the scale of the project, a full valuation was conducted and turned around rapidly to mitigate any risks. We also made use of full title insurance and DocuSign to ensure the deal could be completed in a timely manner, helping the borrower avoid unnecessary fees from the previous lender. The deal was facilitated with the support of Ella Hunter from JMW Solicitors and Ozzy Vergara from Tapton Capital.

The deal highlighted our Business Development Executive, Michael Trafford, National Account Manager, David Weir and Senior Underwriter, Andrew Bate’s, commercially minded approach, their expertise in structuring development exits, and their ability to work seamlessly with new brokers, ensuring a smooth completion even on large and complex cases.