Short-term finance is one of the fastest growing and popular areas of funding in the property market today. Essentially, with cash-flows often squeezed for numerous reasons, or simply not wishing to employ capital too intensively, the solution can be utilising existing properties, land or development sites to release funds, or indeed borrowing funds quickly to secure and complete a purchase. Lending decision in 48 hours. Funds can be in your bank within 2 weeks from application.
Up to 70% Loan-to-Value
Rates from 0.75% per month
£500,000 to £20,000,000
- Finance existing assets or portfolio.
- Finance to purchase land or property.
- Finance to purchase pre-planning land and to finance planning costs.
- Sales Exit: if a part completed site is water-tight, finance against the full GDV to release funds.
A developer client was presented with an off-market opportunity to purchase a discounted site with planning for 25 apartments in South London. In order to secure the purchase he needed to complete within 4 weeks. The company’s cash-flow was tied up in existing developments.
GDV of project – £7,500,000
Land cost – £1,900,000
We provided a finance facility of 70% LTV for the land facilitating the purchase at 0.65% per month, funds were complete and in the developer’s bank in two weeks from application. Concurrently, we arranged a full development facility with equity funding to repay this facility and provide funds for the full build costs of the scheme over 24 months.
The client therefore not only secured the site quickly for well below market value, he also secured full funding for the entire project and was breaking ground within three months of making the offer.