Case Study - Development Finance: £1,118,000

Here's a new case study that you can also check on our website. It's about a fantastic development finance loan in Balham Park Rd, London

Project to completion: September 2019 (12 days)

The developers are an experienced property management company who operate predominantly across southern England. They generally tend to focus on development projects, either from a straight conversion from flats to luxury development or (as in this instance), taking a previous high occupancy HMO and re-developing it into a luxury modern flat offering for fewer dwellings.

Due to their experience, the developers had efficient timescales in place to deal with planning and redevelopment schedules. Unfortunately, due to the lengthy planning application process, these timescales were affected and the client's initial deal with another lender was coming to an end without the view to extend.

Mint Bridging was approached with the outline of securing the finance in an extremely short timeframe, so that both the initial loan could be redeemed and development could continue. The agreement was in place the same day with all the complexities of the initial lender. The first drawdown from Mint was achieved within 12 working days.

Further to this, Mint’s development team worked with the borrower to ensure an increased day 1 drawdown of £900,000 so that their development could continue at speed. Mint also agreed to a 12 month borrowing period, to allow for an additional resale period at the end of the development, as a safety measure for the borrower.

The ability of Mint’s development finance ensured the borrower was able to deal direct with underwriters throughout the initial application. Working with the underwriters, the borrower was able to resolve the complexities around transitioning from the initial loan swiftly. This allowed the borrower to access the funds much quicker, as the barriers were removed between all parties to ensure an increased initial drawdown.