The specialist lending market can be a significant asset to a property professional with different types of finance available over the course of a development project. One of the most common and sensible product transitions is a development finance facility onto a bridging loan.
This case study highlights the simplicity of this refinance with West One.
A well-established family-owned housebuilder.
The client had raised money for the purchase and build of a development of 8 residential flats in North-West London through our development finance team.
Having completed the build, a bridging loan was then required to give the developer additional time to sell the flats. The borrower also wanted to raise money for business cash flow purposes.
This is another great example of where the strength of a relationship between a lender and a borrower really comes into its own. Having worked with the borrower on the development finance, we had developed a good relationship with the individuals involved. As such, as well as financing the sales period, we were also able to release further equity to support the client's short term cash flow requirments.
Simplicity. A development exit is a very popular refinance option for property developers. On occasions, when timescales don't go to plan or cash flow is needed a quick and simple transition to a bridge can solve a lot of problems. As experienced bridging lenders since 2002, this was a very quick and easy case for the team, ensuring a cost efficient and stress-free case completion. The benefits of an existing relationship is also the speed in which we can complete, the refinance was completed in 22 days in this instance.
This smooth product transition further developed the relationship with the borrower throughout the build of their development, the client was extremely happy with the service and simplicity of the transaction and was keen to remain with one lender for the duration of the development.