Scotland – Part-Built Development Funding
Our long standing Scottish based client came across an opportunity to acquire a partly-constructed development site. The site had approved planning permission to construct eleven flats in a desirable main city centre location. The current builder was experiencing financial difficulties and as such was looking to sell the site and accept a reduced below market value sale price.
The new site was close to another development that our client had recently completed and as such he knew the area and potential very well. Whilst waiting for his current site to fully sell, our client wanted to take full advantage of the bargain price of the new site as this would be potentially very profitable and would help our clients market presence and standing in the area.
Traditional lenders currently tend to shy away from development finance so a partly-constructed scheme would be completely off the table especially when it has already had financial difficulty.
We worked closely with our client in carrying out a full and in-depth due diligence report and we were able to prove the feasibility to lend on the site to our chosen lender and ensure the security offered met their required criteria. The site was subsequently purchased, built out and sold, creating substantial profits for our client.
Our client was highly experienced before we met however he now uses UK Property Finance for all of his finance needs as our added value proposition is something that creates him wealth.