Supporting a £2.1 million finish and exit loan in Northumberland

This week we have completed on a £2.1 million finish and exit loan to support the completion of a four-unit barn conversion project in Northumberland.

The client was part-way through the development when key members of their development team became unwell during the build. As a result, they needed additional time and funding to complete the remaining units, market the development and achieve a successful exit. At the point of refinance, two of the four units had been completed, while the remaining two were still at a much earlier stage of construction.

Our facility was structured at 70% LTGDV and provided a day one net loan to repay the existing development lender, alongside a £611,000 drawdown facility to fund the completion of the two unfinished barns.

The deal was originated by Ryan Brewer, our Business Development Manager for the North, and underwritten by Loulou Rich, Underwriter. The transaction was introduced and expertly packaged by Steve Toole at NMS Commercial Services Ltd.

Ryan Brewer commented:

“Completing this deal was no easy feat. It involved a number of moving parts, with several issues arising late in the transaction. Most notably, bats were detected on-site, creating a significant hurdle at a critical stage of the process. Thanks to Loulou’s excellent work, we were able to get comfortable with the situation and proceed without changing our loan terms. We’re grateful to Steve and his team for trusting us with this deal.”

This case highlights the importance of experienced underwriting and a collaborative approach when complex development finance transactions encounter unexpected challenges.