Specialist finance provider Saxon Trust has recently completed a £3.3m loan, introduced by Bridgedevelopment Property Finance, on its Finish & Sell product.
Secured against a luxury development of 14 apartments in Derbyshire, drawdown was executed with the block wind and watertight but works still required to fit out several of the apartments together with the completion of communal areas and external works.
The scheme is in a prime location in the Derbyshire Dales and is set within its own private grounds of 1.5 acres.
As well as a £2.7m refinance of the existing senior loan a further £300,000 will be required to complete the works over a period of nine months.
This is the first loan the Saxon team have closed for this developer but with several more in the pipeline they will be looking to forge a close working relationship with him and his team.
The developer said: “By reducing the cost of my funding, covering the cost of the remaining works and giving me the time needed to effectively market and sell these apartments I will be able to maximise my profit on this scheme and move seamlessly onto new pipeline projects.”
Phil Mabb, director at Bridgedevelopment Property Finance, added: “Unlike the incumbent lender, Saxon Trust took a pragmatic approach to dealing with a difficult project that had stalled both due to a failed contractor and the advent of Covid-19. I applaud their ingenuity in providing a solution to a difficult case.”
Andrew Gardiner, director at Saxon Trust, concluded: “We are delighted to have completed this Finish & Sell loan for Phil.
“Together with our Market & Sell product, for schemes that have reached practical completion, development exit deals have become a core element of our product range in the six months since they were launched.
“With competitive fixed rates, terms from 3-18 months and the flexibility these products offer in what is now a very challenging market we look forward to assisting many more developers.”
