Providing flexibility through a £2.85m development exit facility

Last week, we provided a £2.85m development exit facility to support a developer looking to refinance an existing development loan and unlock capital from a completed residential property in North Yorkshire.

The facility was secured against a substantial residential property and gave the borrower additional time and flexibility to market and sell the completed asset, without being pressured into a quick sale.

We provided funding at 71% loan-to-value against the property’s open market value, equivalent to 80% loan-to-value against its 180-day valuation. The facility repaid the existing development finance while also releasing significant capital, enabling the borrower to acquire their next development opportunity.

This transaction is a great example of our appetite for complex development exit cases and our ability to provide tailored solutions where a more specialist approach is required.

Due to the property’s high value and rural location, achieving this level of leverage required a detailed understanding of the asset, its liquidity, and the local market. Working closely with the borrower, broker and wider professional team, we were able to structure a solution that provided the time and flexibility needed to achieve the borrower’s objectives.

The transaction was introduced by John Wain of Forest Hall Financial Solutions, originated by Annaliese Ellis, Business Development Manager at Glenhawk, and underwritten by Caitlin Nicholson, Underwriter.

Annaliese Ellis said:

“Development exits are an important part of our proposition, and this transaction highlights the value of taking a specialist approach to every opportunity.

“Given the property’s high price point and rural location, achieving 80% LTV against the 180-day valuation required confidence in the asset and a detailed understanding of the exit strategy. We worked closely with John and the wider team to deliver a solution that gave the borrower the flexibility they needed to move forward with their next opportunity.”

John Wain of Forest Hall Financial Solutions added:

“I have to give a lot of credit to Annaliese, Caitlin and the team at Glenhawk, Sarah at Allsop, and Navid at Healys for all their help in getting this challenging deal over the line.

“Achieving this level of leverage at this price point is an incredible result. I would not hesitate to recommend Glenhawk and everyone involved.”