Paragon’s ‘Commercial Lending’ division provided 100% funding for a customer to acquire a development site with planning permission.
The case – which was introduced by Positive Lending – was for a customer looking to refinance their bridging loan on a property in Watford.
They had purchased the property for £805,000 in December 2018 but their application for planning permission to develop two houses on the plot was declined.
The customer eventually applied for one house of 6,000 square feet, which was granted. Currently, they are selling the site with the benefit of planning but is also at the same time going back to planning to get two semi-detached properties approved.
Roma also took additional security on a residential property to give the customer 100% funding to repay their existing bridging loan £645,000.
The loan was completed in just 10 days. The term of the bridge was nine months and the exit will be the sale of the site, with planning, which is currently on the market for sale at £1.2 million.
Daniel Hill, divisional sales manager at Roma Finance, comments: “This was an interesting case as it had several different requirements from the customer.”
“After meeting them and looking at the viability of the transaction it was clear that the site with planning permission would be a very profitable development.”
He says: “This was a complex case but we managed to arrange 100% funding, with additional security, in the time frame the customer was aiming for.”
James Oldham, specialist lending manager at Positive Lending, adds: “The client needed to move fast, otherwise they would be going onto a default rate with their existing lender.”
“Dan Hill and Adrian France had enabled this loan to progress at speed and got this case over the line within the time scale required. As always, they were very prompt with responses and were always on hand to ensure the smooth processing of this case.”