Property Development Deal!

Key are very pleased to showcase a recent deal which was successfully completed for a property development. Although small values were involved, we still enabled the client to achieve significant profit and value for their scheme.

  • Client had acquired an old office property using their own funds with an aim to develop into two self contained flats.
  • The property purchase price was £95k and they were looking to spend an additional 30k on development.
  • The client required £70k of funding towards the scheme.
  • The completed scheme value was c. £300,000.
  • They were declined by their own bank and various other lenders.

So how did Key assist?

  • Having valued contacts via our in-house development finance company –Yorkshire Property Finance Ltd (YPFL) we were able to take a commercial view on the deal and rapidly assist with the funding of 70k.
  • This was completed within 4 weeks, from first initial visit to the site.
  • YPFL also provided an additional £10k of funding to cover a cost overrun.
  • Once the property was completed and re-valued, we then arranged a longer term facility of £187.5k at 2.83% over base- to repay YPFL and allow the company to repatriate the cash injected by the family.
  • The new loan was obtained on very excellent terms-a lender set up fee of 0.75%, and an interest rate of 2.83% over base rate.

Here at Key we will always endeavour to assist our clients to achieve their best potential. The flexibility and speed at which the various lenders could move allowed our client to finish their property development smoothly and efficiently. If yourself or your clients need assistance for the above then please do not hesitate to contact me.