Alternative Bridging Corporation has provided a £1.15m alternative overdraft facility to support a residential development in York.
The client, who was living on site in one completed unit, required funding to continue construction across seven part-built homes, all held on the same title.
The site, valued at £2.8m presented strong fundamentals, but there were a number of challenges.
The completed unit had not yet received building control sign-off due to delays with the electrical certificate and energy performance certificate (EPC).
Additionally, a Professional Consultants Certificate (PCC) was in place instead of a full new-build warranty.
Alternative Bridging worked closely with the borrower and their adviser to structure a revolving credit facility against the whole site.
The alternative overdraft enabled rapid access to funds and allowed staged drawdowns as required.
To support completion, the lender made building control sign-off a post-completion condition, giving the borrower time to resolve certification issues.
The deal was also progressed on the basis of the PCC, without the need for a structural warranty.
From first contact to funds being in place, the transaction completed in 12 working days.
The borrower is now progressing construction of the remaining homes, with exit planned via open-market sales.
Paul Gavin (pictured), head of sales at Alternative Bridging Corporation, said: “Specialist finance is often about finding solutions where traditional lenders might struggle, and this case is a good example.
“With a mix of part completed units, delays around sign off, and a slightly unconventional setup, it needed a flexible approach. Our Alternative Overdraft gave the borrower the breathing room to get things moving again, drawing down funds when needed without being tied to a rigid structure.
“It’s a really useful option for borrowers in that in-between stage, when bridging feels too short but a long term loan doesn’t quite fit.
“We worked closely with the borrower’s team to keep things moving and got the facility in place in just 12 working days. That kind of speed and flexibility can make all the difference for brokers and their clients.”
