Bridging Finance Solutions (BFS) has provided support to a fledgling developer, providing a £350,000 loan to a private client in Lancashire.
The aspiring developer, a business owner, was keen to explore opportunities within the wider property industry, and acquired two adjoining farmhouses in the village of Bacup, Lancashire. Her plan was to reinstate the building, creating one large, single family home.
The client was able to purchase the property outright but had to secure funding to complete the development. Her intention following development is to sell on and thus provide her with the potential to look at the next project. The finance application began just as Covid lockdown was enforced; however, she worked closely with the BFS team to secure the deal.
The client said: “BFS offer a very bespoke financial product that is ideal for projects such as mine. I was able to guarantee the loan against the value of the land, with the loan to be allocated in phased drawdowns throughout the construction period.
“The impact of Covid inevitably slowed things down – professional legal services where under resourced and where slow to deliver which was challenging and frustrating. We did, however, complete the deal during this period and I’m about to take the next drawdown. The project is set for completion in September and I expect to be able to put the property on the market for around £750,000, realising a fairly healthy profit.
“My contacts at BFS have been brilliant throughout the application phase, supporting me in very uncharted territory. I would definitely use development finance again and would choose to work with the team at BFS. It’s been quite an experience in which I’ve learned a lot, not just about the build but the all important financial aspect – this has undoubtedly wet my appetite for property development and I’m already considering my next project.”