From Refinance to Profit: £1.1M Development Funded in 12 Months
Refinance and development success
The Situation: We provided a total loan facility of £605,000 including interest provision for a period of 12 months to assist with the refinance and development of a site in Southend.
The Challenge: Planning permission had been granted for the demolition of an existing bungalow and outbuilding and the construction of a pair of two-storied three-bedroom semi-detached houses with parking provision for two off street parking spaces. Total GIA 1,400 sq. ft.
The Solution: Our client, an NHBC registered builder/developer, completed the works himself at a cost of £288,000 utilising the development facility provided by Envelop. The projected market value of the properties upon completion was £1,100,000 (£550,000 per property).
Loan Amount: £605,000
LTV: 55% of GDV
Term: 12 months
