Case study 1
Keys Facts:
Client: British Resident
Planning agreed for renovation of existing home ( phase 1) and development of a large 6 bed home (phase 2)
Current property Value: £1,000,000
Loan required : £600,000
Current mortgage secured on title £695,000
Gross Development Value of phase one: £950,000
Finance was needed to complete phase one of a project to renovate an existing home, ahead of a second phase involving the development of a new six-bedroom property.
The broker identified that traditional self-build finance was not suitable at this stage due to cashflow restrictions and affordability constraints associated with available products.
Using our strategic relationship with a bridging lender, we supported the broker in structuring a second charge bridging facility. The loan was secured against the project property, with additional security provided through the client’s buy-to-let portfolio.
All fees and interest were retained by the lender for the duration of the facility, with the loan to be repaid on the sale of phase one.
The sale of phase one will enable the original title to be split, leaving an unencumbered plot. This creates the opportunity for the broker to arrange appropriate finance to start and complete phase two of the project..
Why do brokers want to work with Mayflower?
Mayflower was founded after our directors, Mike and Lulu, completed their own construction project. They saw firsthand how complex and unclear specialist finance can be, even with their industry knowledge.
Today, we are a specialised team focused on finance for self-build projects, renovations, and conversions. Many of our team members are self-builders, so we understand the pressures involved in decision-making. We take the time to thoroughly understand each project, communicate clearly about what is achievable, and support brokers and their clients through a professional financing process.s involved. We take the time to understand each project thoroughly, communicate clearly about what’s achievable, and support brokers and their clients through a professional finance process.
