Facilitating the Development of Purpose Built Student Accommodation
See how Forecast Finance secured a multi-million-pound loan in just eight weeks to refinance the cost of developing three student accommodation buildings.
Development Loan for a Student Accommodation
We were approached by a client who had recently finished three separate purpose-built student accommodation properties. They were looking to refinance and repay an existing lender who had supported the initial build costs while also looking to raise capital out of the properties and move onto the next project.
The properties, located in Kent, were of exceptional quality and already had a strong demand for occupancy. The client was able to demonstrate this easily along with expert property management skills, making the valuation a simple process.
Lloyd’s Bank were selected as the most suitable lender for this case, providing a full loan of £5,100,000 and completing the whole process in less than two months. The client was thrilled with the results and is now working with us on their next project.
Overview of Case Study
- Property Value – £9,000,000
- Loan Amount – £5,100,000
- LTV – 56%
- Term – 60 Months
- Timeframe – 8 weeks (valuation to completion – 4 weeks)
Quote from Lloyds Bank:
“A big thank you to Paul Atkinson of Forecast Finance for the introduction and this great opportunity to support the client’s journey. The client chose our popular partial amortizing loan product which offers flexibility and great rates. It was a team effort to get this deal drawn in a short timescale, but with the support from Paul, we succeeded and have a very happy client.”
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Funding changes to an existing development site
See how our team secured a flexible development finance loan that would repay an outstanding payment while also funding an evolving, new development.
Fluid Development Finance Loan
An existing business client of ours was looking to raise funds to help pay off investors and generate cash towards the planned changes of a development site they already owned. The company also needed a development commitment that the chosen lender would fund an ongoing development proposal of a six-unit scheme.
The existing development plan was for the refurbishment of a large commercial property into six apartments. However, our client was looking to adapt the proposal and build an extension on the existing property that would allow for the development of three additional apartments, taking the total number of units up to nine.
The initial loan amount requested was £819,449. This was sufficient to repay the investors and cover professional and planning costs for the proposed changes to a nine-unit scheme. Should this planned change be declined, the requested loan would instead cover the development of the original six-unit scheme.
Consulting our established network of lenders, we decided to approach the United Trust Bank (UTB) to be the lender for this project due to the fluid nature of the planning and development process. We needed a lender who was forward thinking and flexible enough to underwrite and agree to the funding for both the existing planning agreement of six units and the potential nine-unit development if it were approved. UTB agreed, subject to a revaluation with updated costings.
In the end, the nine-unit scheme was approved, and the lender reviewed the project with the revaluation in mind, increasing the borrowing amount to allow for the final project to be completed.
If this project had been Introducer-led, the commission earnt would have been £3,687.50 with a further payment once the project had increased to nine units.
Overview of Case Study:
- Purchase Price £780
- Overview of Case Study:
- Loan – £624,828
- Rate 0.84% per month
- Term 12 months
- Lender – United Trust Bank
- Completion time – from terms being accepted to completion – 6 weeks.
The difficulties which needed to be overcome
The difficulties in the requirement from the client was very much around the planning and the two different schemes that had to be considered. The lender needed to be comfortable that whichever planning option was agreed and taken forward that they would be comfortable funding both options, which is why UTB made the most sense.
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