United Trust Bank was approached by developers looking to build a small, gated development in Kent. The project consists of 14 houses of varying styles in a farmstead design and in a sought after location overlooking several miles of uninterrupted rolling meadowland and adjacent to a wildfowl bird sanctuary. Despite the rural setting the properties still benefit from excellent transport links and lie within an hour of London by train.
The development consists mainly of 2 and 3 bedroom houses, detached and terraced, in a barn style together with a 5 bedroom detached main house. In all the accommodation extends to around 16,000 square feet.
Although this is only the second project for this developer, the directors, who are all in their 20’s, have a strong monitoring surveying background. Another factor in their favour was that they had brought in a highly experienced local contractor with a JCT contract. Having appraised the whole situation we agreed to fund the scheme.
United Trust Bank agreed to fund just under £2.1m representing around 55% of the Gross Development Value (GDV) of £3.8m. We have provided an 18 month facility which comprises 12 months build and a 6 month sales period thereafter.
However, despite some of the worst weather in living memory, the build is progressing on time and on budget, with the developer even managing to achieve a number of off-plan sales so that the loan should be repaid shortly after practical completion of the site later on this year.
Loan amount £2.1m – GDV £3.8