Going above and beyond for a complex land development

Situation

Some client situations are more complex than others. But when it comes to tricky details, this project took the biscuit. We were first approached by the broker with a client who needed an urgent bridging loan to complete their purchase of some derelict buildings on more than 21 acres of land.

Planning permission was all set to convert the buildings into a restaurant and hotel, with 18 new holiday let units attached. But our LTV appetite for this kind of project would normally be much lower than what was needed. And there were some other complications.

Solution

Given the excellent relationship we had with the broker, and the relationship they had with the client, we decided to look closely at every detail and make it work. That started with committing to flexibility over the loan amount, which we upped to 78% LTV.

To save time and money we also agreed to use their existing valuation and report. As things progressed, all kinds of new issues came up, but we dealt with each one carefully, flexibly and productively to keep our eyes on a positive outcome.

When details of a previous company insolvency came up, we looked into it and established that we were okay with it. When we discovered a small CCJ on another company, a planning enforcement notice and some other issues with the land we made sure everything was covered off as post-conditions. We took out an indemnity policy to protect ourselves from a potential third party claim, and since the client was also borrowing with another lender we added a Deed of Subordination, which helped to keep everything wrapped up.

Result

The end deal had some serious small print, but everyone came out smiling. Especially the borrower, who now had the funds they needed to get going on their exciting development. All in less than two weeks of first approaching us. We’re delighted to have helped them find a solution, and to be able to make our strong relationship with the broker even stronger.