🏗️ Case Study: Smart Land Finance – Bridging & Development Finance for a First-Time Developer
Problem
📌 Client Profile:
- First-time developer acquiring a development site in Surrey • Urgent need for swift completion due to environmental restrictions (nesting season constraints) • Required structured finance to enable both purchase and development
As a first-time developer, the client lacked direct experience in managing construction projects. To mitigate this, he hired a project manager to oversee site development while he focused on running his primary business. The challenge was securing financing that recognized this structure.
Solution
✅ We selected a lender specializing in both bridging and development finance. This allowed:
- Rapid bridge finance approval to secure the site before it was relisted • Immediate access to funding, preventing costly delays due to seasonal restrictions • A seamless transition from bridge finance to a development loan, reducing overall financing costs
✅ 💰 Strategic Financial Gains:
- Structured financing to maximize leverage—80% of purchase price, equating to 60% of open market value (OMV) • Lender provided funding aligned with the client’s development strategy, ensuring long-term viability • Minimized upfront capital commitment, enabling greater financial flexibility
Outcome
- Secured a dual finance package—bridging loan followed by a development facility • Reduced overall financing costs by streamlining the transition from bridge to development loan • Ensured the client could commence construction immediately without waiting months for additional financing approvals
💰 📢 If you’re a developer looking for structured financing to secure your next project, we can help. Contact us today for tailored solutions that fit your investment needs.
