Client requires support for small profitable development site
- Location: South West
- Amount Required: £30000
- LTV for entire deal: 41%
- Sector: Development
LTV represents Loan To Value, where Value is an up to date valuation of the property involved and Loan is the total amount to be lent to the borrower, including the Investor's loan.
Client has obtained planning permission for a 3 bedroom semi detached property. This is on an unencumbered plot which will join his, currently detached house. He is splitting the property and title so all existing borrowing will be against his own residency.
He is not experienced in development however he is employing an experienced builder who is NHBC registered.
The build costs are quoted at £70,000 and a prime lender has agreed to lend £40,000 and they are happy to split the title/property. They are also happy with a second charge
End value is £170000 and it will be a 6 month build.
