The past year has been a stopstart affair for housebuilders. Buildcost inflation has calmed a little, but rising base rates mean the carrying cost of development debt is still front of mind for anyone with a site coming to practical completion. One of our regular clients reached exactly that point: the block of six apartments was finished, snagging was underway, yet their original development loan was due to expire before any of the units could be let. In today’s market, a forced sale—or even a straightforward bridging loan at doubledigit interest—can erase a large slice of profit, so speed and price both mattered.
We approached a short list of lenders that remain comfortable with “developmentexit” scenarios, pitching the deal as a nearstabilised, incomeproducing block rather than a risky construction project. By leaning on fresh rental comparables and updated RICS values, we secured a £1.23 million facility at a margin that looked more like term debt than bridging finance, and we completed the legals inside a fortnight. The client now has twelve months of breathing space to let the flats and then move them onto standard buytolet mortgages once the rent roll is proven.
“Speed is important, but clarity is everything,” says Daniel Dawson, Director at Cator Wells. “In a market where lenders are watching the macro headlines as closely as the numbers on the page, we focus on telling a clear, sensible story. That helped us get the funds released quickly, at a rate the client can live with.”