UK Property Development Finance - Case Studies

Looking at Property Development but require funds then Sterling Commercial Finance can help. Below are a few case studies.

Our commercial property development finance consultants all have backgrounds in the banking sector and can offer added experience and advice to clients in respect of structuring commercial property deals such as commercial mortgages for Investment Property in Housing, Flats and Apartments for the rental market.

Case Study 1 - Property Development Facility - £1,000,000

Area - Development Facility for 9 houses in the Cotswolds
The client owned a Residential Care Home, which had closed down because it was not "fit for the future".

Planning permission was obtained for a Residential Housing Development which involved demolishing part of the existing Home and converting the remainder into two units, plus seven new build units in the grounds. The client's Project Manager was formerly the Commercial Director of one of the large building plc's.

Property Development Finance Solution

  • Facility agreed of £1,000,000 covered 100% of development costs.
  • Bank base rate plus margin 2.5%.

Case Study 2 - Property Development Facility - £2,000,000

Area - Development facility to build 20 self-contained, 5-bedroom flats for the student market in Leicester
Client is converting his existing factory unit into flats and also building a new block of flats on land he owns adjacent to the factory. The property is in a prime location, opposite a major University.
The client's existing bankers were only prepared to fund the development on a phased basis. Our deal enabled the client to build out in one operation, saving considerably on build costs.

Property Development Finance Solution

  • A 15 year repayment facility was agreed at bank base plus margin 2%

Case Study 3 - Property Development Facilities - £400,000

Area - Development facility to purchase and refurbish 'redundant' hospital buildings, to create 5 factory units for letting out in the East Midlands.
Client had option to purchase, and subsequently obtained planning for change of use, which significantly increased the value of the site. As the latter is located in a newly built, prime residential area, the client had managed to pre-let the units, at a total rental of £80,000 per annum.

Property Development Finance Solution

  • Total project cost £480,000 including initial acquisition cost. Projected value £700,000.