- Heavy development
- Loan amount: £130,000
- Day one funding: £50,000
- GDV: £430,000
- Term: 18 months (9 months minimum)
Roma Finance was approached to support a property developer, who required funding to assist them with the ground-up development of two semi-detached 2-bed properties.
The borrower is an experienced property developer with a skilled team working behind them, and has recently completed a similar ground-up development project.
The land on the development site was purchased by our borrower for £120,000 from funds generated from an existing completed development. Due to COVID, Roma extended the term of the loan to 18 months in order to provide the borrower with plenty of time if they were to be faced with any delays.
Due to the development having a low LTV, Roma were able to be creative and offer an alternative interest option. Instead of it being deducted from the initial day one funds, it was rolled up into the total cost so the borrower only had one interest sum on top of repayment at the end of the loan. This benefitted the borrower as it allowed them to have additional funds available on day one to spend on works.
The two semi-detached houses both now benefit from contemporary living and dining areas, two spacious bedrooms and modern bathrooms.
Adrian France, Senior Underwriter at Roma Finance, commented “It was great to get this deal over the line for our borrower and witness what is achievable with just an empty plot of land! With the uncertainty of COVID looming over us, we extended the term of the loan to provide the borrower with enough time to complete the development, ensuring that we were prepared for any setbacks. The deal itself was very straightforward and the outcome of the project is fantastic – I look forward to receiving any future deals that come our way.”
The borrower also commented “I have been very pleased with my experience with Roma Finance on my most recent project. Roma has been very responsive and reliable on anything I have asked for during my project. It has given me the confidence to do business with Roma on future projects.”
The intended exit is the sale of both properties.