LendWell were able to provide a development exit loan on a finished site that helped unlock a new £3m GDV site purchase for our client. The client had worked for over a year to agree contracts on the new purchase but where still a few months away from completing and selling on their current development. They needed the capital to complete and we quickly understood the whole picture and the client’s ability to deliver on the span of projects.
With the benefit of seeing the whole picture we were able to advance 74% of the gross development value (£290k), taking security behind the existing development lender despite the scheme being 8 weeks away from practical completion. The key for us was getting behind the sales profile of the nearly complete units and the remaining build program. Together with the quality of the client this enabled us to execute on the loan in a matter of weeks, despite the complexity of the existing development lenders security.
We were introduced to a client who had a well proven but unusual strategy for building an investment portfolio. We listened and quickly got to grips with how the client was acquiring and then manufacturing short term genuine value appreciation in the property. Taking this understanding we created a bespoke loan that provided finance against the end value of the property, reducing the amount of cash the client needed in order to support the project. This meant he could deploy his capital in other opportunities and grow the portfolio faster.
With our knowledge of the market we also modelled the long-term return on investment once the client had achieved a longer-term mortgage, presenting our finance solution so that the client could see their development profit but more importantly longer term return on net cash.
We are confident our approach here was unlike funding available anywhere else in the market, but do not wish to disclose the clients model in too much detail!