New Case Study: Development Finance: £640,000

Mint Bridging recently had the opportunity to work with a developer who was embarking on their most challenging project to date. The borrower, who operates locally, has bought and sold multiple houses and has gradually been increasing the level of their portfolio scope. Prior to their latest project, they demolished a house and rebuilt it for resale. This was located in the same town as their ambitious new development. The recent project was to be their first ground-up from scratch and a step up in undertaking, not only for the scale but also for the standard of the development they were looking to construct.

The borrower was well accustomed to the area and had secured the land, following a previous ground-up. Now they were looking to fund the project with planning, having been formally approved and given the green light to begin construction.

Mint Bridging were approached for funding, alongside a number of other bridging lenders. We were selected due to our reputation for financing from-scratch projects and to lengthy experience of working with developers on ambitious projects. Due to Mint’s ability to treat every case individually and our comprehensive underwriting, we could offer the borrower a more favorable rate versus the majority of other lenders. Mint’s ability to favorably structure the loan to the borrower’s needs was very important for their first-ever greenfield to ground-up plan.

We provided a loan of £640,00 secured on a 1st charge on a term of 15 months, and drawdown within 14 days of initial loan acceptance. The facility also included £50,000 in a contingency budget, should any unforeseen issues arise with the build. The borrower’s plan was to exit the loan on completion of works via the sale of the property. By providing a 15 month term, Mint was ensuring the developer had a comfortable amount of project delivery time, accounting their new feat. As is customary for Mint loans, with an exit on the property sale we added extra loan time. This reassured the borrower so they had a decent period between completing the work and then selling the property.

Throughout the process, the developer worked efficiently ensuring all tranches were drawdown on time. As predicted, they completed prior to the estimated end/exit loan date. The results have proven to be exceptional - the borrower now has the property on the market with an asking price in excess of £1.4m.

The left images are before. The right images are afterwards: