It lends £1.6 million to an established family housebuilder
Development lender Fiduciam has provided a £1.6 million ground up development facility to an established family housebuilder in Worcestershire at 70% loan to gross development value.
Fiduciam’s 18-month facility assisted the borrower with the purchase of the site and fully funds the £1.1 million works budget. The interest rate is 0.79% and no exit fee is payable.
The borrower’s agreement with the vendor of the land enabled works to begin before completion of the purchase.
Fiduciam’s challenge was to ensure that a flexible initial drawdown was available that fully covered the works-to-date as well as providing funds towards acquisition costs. The initial Loan to Value of 59% was calculated against the combined land value and the QS certified works-to-date.
All three of the completed units have idyllic views over the Malvern Hills.
Anastasia Sachinidou, case manager at Fiduciam, said the case demonstrates how close long-term borrower-broker-lender relationships can deliver finance solutions that are optimally tailored to borrower requirements.
“Small housebuilders often negotiate bespoke agreements with landowners which enable them to seek planning before completing the purchase of a site. In this case, the developer could also start works prior to completion. Fiduciam’s loan provides efficient funding at the time it is required, and therefore helps reduce the borrower’s overall finance costs,” Sachinidou said.
“In this fast-moving space, it is essential to consider cases on the merits of their core credit risk fundamentals and adapt products to borrower and scheme requirements. We were delighted to provide another tailored loan solution to a returning borrower in the Midlands,” Marc Morris, underwriter at Fiduciam, added.
