The property
Purchase and redevelopment of a 2.2 acre plot into a 4-bed detached family home with a detached garage.

**The facility **
£448,067 over 18 months at 10% per annum to assist with the purchase of the property (£150,000), its subsequent redevelopment (£232,125), interest (£55,000) and fees (£10,942).

The lending opportunity

  • Expected 9.25% p.a. interest rate paid to lender (based on expected gross rate of 10% minus 0.75% lender fee, pro rated on annual basis).
  • Interest rolled up – fixed rate.
  • First Fixed Charge, Debenture , Guarantee.
  • Four tranches published to Lending Marketplace from October 2016 to April 2017.

**Our credit assessment **
The developers demonstrated a clear track record and relevant experience and the directors held sufficient assets to provide cost overrun and completion guarantees. Our independent, panel-approved assessors valued the site at £275,000 and our Monitoring Surveyor estimated a total fit-out and construction cost of £247,500. In total, the development was expected to cost £640,000 and sell for an estimated £780,000.

The results
10% p.a. gross returns paid to lenders (9.25% net return after fee deduction)
All tranches successfully funded
Property listed for sale in April 2017 for offers in excess of £799,000. The property is currently sold subject to contracts.

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