West One, one of the biggest privately funded short-term lenders in the UK, has been approached by a property developer looking to fund the development of a luxury residential property.
The house, based in Esher, Surrey, is at the early stages of development, with the main walls constructed up to first floor level only. All work up until this point has been entirely funded by the borrower.
The developer was seeking a loan worth 37% of the unaltered value of the property (£2,700,000), followed by additional draw-downs subject to re-inspection of the property to assist with the final development of the house.
We felt comfortable working with this borrower, and, within a month, had carried out all the relevant checks and necessary due diligence.
West One agreed to arrange a suitable funding facility secured against sale of the property. We lent the borrower £1,000,000 as the first tranche of the loan at a rate of 1.25% a month for a period of 18 months and agreed to release an additional £1,300,000 based on re-inspection of the property.
We look forward to seeing the finished project!