The bank’s customer is an experienced contractor who has started undertaking development of detached houses in the £1 – £3m bracket in popular areas of West Sussex and Surrey. To date all of the developer’s funding has been from a private investor however they now wished to begin a relationship with an established development lender.
The site, located on a sought after private estate, had already been purchased by the borrower and was unencumbered. UTB agreed a facility of £540k to cover all of the build costs and rolled-up interest. This is under 40% of GDV so had the borrower needed to clear a site loan we would have been happy to lend a higher amount.