Case Study: Falling into Step
It is the perfect result when a lender, intermediary and customer fall into step with each other to achieve the exact desired end result and complete a property project with maximum profit on time. Perfection is improved upon when all parties come together again for the next project and then again for another; which is exactly what happened in this case.
At Roma Finance we do all we can to structure cases to create the best possible solution for our customer and work with our intermediaries and partners to ensure a flawless service is delivered.
We were approached by our partner, Gordon Duffy, of Business Funding Expert, with the case of a qualified carpenter and experienced housebuilder, Mr Blanchflower, looking to purchase a plot of land with planning permission, to build two detached houses. As a rule, Roma do things differently by underwriting the customer before the asset. His experience demonstrated 15 successful builds in the previous few years and a genuine expertise and drive to get the projects completed.
The first loan of £486,000, to purchase the land and complete the works, was funded in April 2019. The build went to plan and both properties were sold within the timescales and the loan fully repaid in February 2020.
Our customer was delighted and with Business Funding Expert, came back to us with the next project within a month of redemption of the first loan. The second project with Roma was a similar setup; a purchase of land with planning permission with the intention of constructing two 3-bed semi-detached homes. Due to our previous experience with intermediary partner, Business Funding Expert and our customer, the loan for £302,000 was processed quickly during lockdown.
We remained in step with both parties throughout the project, providing support with the challenging climate. The project has been successful and the loan has been partially redeemed, with one property sold and the other projected to complete shortly.
We have established no party is keen to stand still and we have just arranged a third loan of £246,000, again flying through to a quick completion to allow the purchase of land and construction of another detached house.
Following the first completion Mr Blanchflower commented, “Roma were very easy and a friendly bunch to deal with. I am very happy with their service – it was spot on. The service they provided was exactly how it should be and I would definitely deal with them again.”
The proof is clear, now we are on our third development project within 18 months.
All the loans provided have been secured with a second charge on our customers residential home to provide leverage and all have been conducted through his limited company. The first two loans had ‘deferred consideration’ meaning he didn’t pay fully for the land on day one – it was deferred until the houses were sold. This was simply due to cash flow. He did have considerable equity in his residential home and Roma took a second charge on it to allow us to provide the loan amount required. Now the customer has completed two successful projects, he has generated cash and ‘deferred consideration’ is no longer an issue.
This is a prime example of the success that can be had when lenders, intermediaries and customers work in unison, providing clear transparent information and keeping the lines of communication firmly open.
Gordon Duffy, director of Business Funding Expert said, “It is always fantastic when plans fall into place and you can develop a strong rapport with both client and lender. Roma’s customer centric values are very much aligned with my own – service is paramount. We have a great working relationship and Roma’s ability to make individual decisions and listen to each set of circumstances make them a great business to partner with.”
Daniel Hill, divisional sales manager at Roma added “All of these cases have been a pleasure to deal with and Business Funding Expert and the borrower have very clear and well thought out goals. Our flexible underwriting methods allowed us to structure the cases to suit the customer and give him the means to maximise the profit within each project. I am looking forward to seeing the results of this current project and starting on the next one.”