Clients had purchased a site for £700,000 in cash and had applied for planning to renovate/refurbish six of the existing buildings and then build four new houses on the site (one of which will be their home).
They estimate the build time to be 12 months and the costs to be circa £1,000,000 with end GDV of all the 10 buildings to be circa £3,300,000.
The site is a disused School, the clients initially bought the property with the view to obtain planning permission and sell on. However, having seen the potential for development and also a solution for their own accommodation needs, the clients decided to pursue the development project to completion.
The clients have had some previous development experience, though both are now semi-retired and were self-employed contractors, earned income was not a strong point. Due to their current personal financial situation, there was a real lack of lender appetite, however, using their experience and lender relationships, John Charcol secured them a rolled-up interest deal at 10.45%p.a. with a 2.5% fee added to the loan and no exit fee.