My clients were some wealthy property investors looking for a development mortgage, who had been referred to us by another satisfied customer. The asset in question was a commercial unit just outside of London. My clients had planning permission to convert this unit into a block of 12 flats, with a gross development value (GDV) of £2.8million.
However, these clients were struggling when it came to actually securing a development mortgage to finance the scheme, because the unit in question was owned through a Cypriot Limited company. The asset being held in this way meant that most British lenders were unwilling to lend to these clients, so they needed a broker who had access to a broad spectrum of lenders.
Fortunately, because we work with clients from all over the world, we are well versed with securing development mortgages for clients owning properties in a wide range of Special Purpose Vehicles (SPVs). The scheme itself was an excellent one, so I was able to approach a lender I knew would be comfortable offering a development mortgage against an asset owned in a Cypriot LLC.
I negotiated for an 80% loan to cost (LTC) facility at a rate of 6.6% + LIBOR. A high LTC was a priority for my clients, however if they had been prepared to drop this, we would have been able to achieve a lower rate.
At Enness, we have over 20 years of experience acquiring development finance for even the most complex of projects, and our expert brokers are here to guide you every step of the way. Our extensive lender network allows us to secure finance for clients from across the spectrum of developers and developments, so even if you’ve encountered obstacles elsewhere, get in touch for an initial conversation and we would be delighted to talk you through your options.