Dev Exit on newly constructed detached house in Surrey​

One of our broker partners approached us on behalf of their client, who was looking for a Development Exit loan. This was to repay the existing first charge secured on a newly constructed four bedroom detached house. The house was one of two high spec units on the development, one of which had already been sold.

A sale had been previously agreed for the asset, but unfortunately, the purchaser was unable to complete, leaving the developer needing a solution quickly to enable sufficient time for a new buyer to be found.

The borrower needed a lender who was comfortable consenting to the borrower’s developer partner securing a ranking comfort charge with very specific requirements.

Catalyst enabled the borrower to clear their existing facility and move forward with their plans.

QUICK LOAN OVERVIEW 
🏠 Max Gross Loan: £1,268,000
🏠 LTV: 75%
🏠 Experienced borrower
🏠 Retained interest
🏠 12-month term
🏠 Exit strategy: Sale of the property

Ollie Jenkins, Senior Internal BDM, commented: “Brilliant team effort. Everyone involved was proactive and communicative, which helped get this done in a timely fashion.”

Rachel Thomas, Underwriter, added: “This case presented a number of unexpected challenges with regards to the second charge lender which required a flexible and pragmatic approach across both underwriting and legals.

With everyone focused on getting the deal across the line we successfully managed to achieve the best result possible for the client before their existing loan expired. This was a great example of what can be achieved when all parties work together for a swift and efficient conclusion.”

For more information on our development exit loans, click here.