Colenko exits £755,000 Buckinghamshire development facility
The facility funded the site purchase and construction at 66% LTGDV and 43% loan-to-value (LTV), with a rate of 0.89% per month.
Colenko has exited a £755,000 development finance facility for three three-bedroom houses in Buckinghamshire.
The facility funded the site purchase and construction at 66% loan-to-gross development value (LTGDV) and 43% loan-to-value (LTV), with a rate of 0.89% per month.
It included a £135,000 initial advance and £537,000 in staged development drawdowns.
The borrower was an architect and contractor who had completed several private development projects.
Colenko reviewed his professional experience, credit profile and the structure of the deal.
It also required evidence that pre-commencement planning conditions had been met or discharged before work started.
Inflation and supply chain disruption increased costs and delayed the programme.
Colenko agreed a six-month extension after reviewing whether the scheme could be completed and sold.
The lender spoke with estate agents about likely sale proceeds rather than requesting a further valuation.
The facility was repaid through the sale of the three completed homes.
Rob Roscoe, chief executive officer at Colenko, said: “The borrower brought strong architectural and contracting experience, even though this was his first development in his own right.
“We looked at that experience in context, alongside the leverage and the clear sales exit.
“When external pressures affected the programme, we reviewed the position based on current market evidence and gave the project the additional time needed to finish the works.”
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