At Enness Development, we regularly deal with wealthy and high net worth (HNW) clients who are carrying out development projects and thus have development finance in place. Although there are some excellent options on the market, development finance is typically quite expensive in comparison to regular term finance, so it’s important to refinance as soon as possible once a development is finished or nearing completion.
A recent client of mine recently looked to Enness to refinance his current development finance. The gross development finance (GDV) of his project was £29million; he was an experienced developer who nearing completion on over 50 units in an increasingly desirable area of London. This client lived in Monaco.
However, he needed to refinance his current debt because he needed more time to sell the units and his current development finance was too expensive. I therefore set about approaching lenders who could assist. My client’s experience and profile meant I was sure we would be able to find a good solution; the problems came from the size of the loan and his residency in Monaco.
Fortunately, I was able to find a good solution. We arranged for a loan of nearly £18million at a rate of 0.67% per month, which is a competitive price for a loan of this size.
If you are looking to refinance a large development loan and would like to talk through your options, I would be happy to advise you further. The world of development finance can be complicated and using a broker with excellent industry contacts can make all the difference to the success of your project.