Clients were looking to purchase a plot of land for £350,000 that had planning permission granted for a 4 bed three storey property. The build cost of the house would be £225,000 with a GDV of £750,000. However there was also an alternative proposal for 4 flats which had a build cost of about £400,000, with a GDV of £1.3 million.
The clients had a preference to pursue the development of the flats, as this made more financial sense for them, and would need to seek approval for the change, however as two scheme’s used the same footprint, they were hopeful. If they were turned down for the flats though they would still look to build the house. The clients were putting in £250,000 from the remortgage of an existing property, with the balance and the build costs coming from the lender.
John Charcol managed to agree a facility of £500,000 a variable rate of 8.99% for 12months with a fee of 2%, for either option.