United Trust Bank (UTB) completed a bridging facility for a developer in unusual circumstances.
The borrower and his family were occupying the original house on the site and marketing a second new-build 4 bedroom, 4 bathroom home at 2nd fix stage for sale. Both properties were on a single title. The developer wished to give buyers the opportunity to decide the final specification and finish of the kitchen, bathrooms and floorings etc., an approach successfully taken on previous projects. Although the borrower didn’t have funds immediately on hand to complete the build, these could be funded within the facility if required given the significant equity in the security properties.
The borrower’s original development loan was nearing the end of its term and required significant extension fees to renew for a further period. UTB was able to refinance the original development facility at a significantly lower rate, despite the new build property being incomplete.
The new facility gives the borrower additional time to properly market the unfinished property while incurring lower finance costs. In addition, the UTB facility could also provide funds to complete the property should the developer need them.
| Borrower | Developer |
| Amount | £0.8m |
| Loan Type | Developer Exit |
| Term | 12 months |
| Location | North East |
| LTC | 45% |
| Project type | Two detached properties – one existing family home and one new build at 2nd fix stage |
| Special Features | – Two security properties on a single title with one occupied by the borrower – New facility had reduced cash flow requirements for the borrower – Facility would also provide funds to complete the build if required |