Crystal Specialist Finance (CSF), VAS Panel and Priority Law have come together to save a £1m development finance project after the original lender withdrew their offer days before completion.
With planning permission for seven houses and one apartment and construction already underway on the South Birmingham site, it came to light that two areas of unregistered land fell on the plot. Despite relevant indemnities to cover the issue, the lender refused to progress the case which put the project at risk.
The broker contacted CSF whose Development Finance team arranged for the new potential lender’s solicitor to review the land titles prior to the new valuation at no cost to the client.
The solicitor advised CSF to obtain a valuation report without the two unregistered plots which enabled the lender to take a commercial view with the support of appropriate indemnities.
Once considered the lender was satisfied that there was enough equity in the site to provide the client with 100% of the build cost on a 12-month term with a refinance exit route.
Jo Breeden, Managing Director of CSF said: “This is a case of leading industry experts coming together to truly understand a deal and work in close cooperation to ensure the correct outcome for the client, no matter what the issues.
“Gina May at VAS Panel and Rob MacNaughton at Priority Law worked seamlessly with our own Development Finance Director, Michael Fisher. After sourcing a lender, the extra due diligence undertaken at the start allowed us to find a solution for the client which did not accrue any additional fees.”
CSF operates across five specialist divisions: Bridging, Commercial, Development Finance, Second Charge Loans and Specialist Mortgages. The business is open to applications on all types of properties in England, Scotland and Wales, with the company having access to over 80 lenders, including exclusive product lines.
For more information please contact us below:
Tel: 01827 301 070
E-mail: info@crystalsf.com
Web: www.crystalsf.com