Atelier
35 NEW HOMES IN YORK
Rav Kudhail
General background details about the transaction/ property: We have provided a £9.6m development loan to sup port the site acquisition and the development of 35 apartments.
The development will comprise a mix of one, two and three bed apartments and is well located in central York, in an area with a lack of new build supply.
Comments from parties within the transaction:
Loan size: £9.6m
Loan term: 26 months
LTV and/or GDV: 70%
Reason for the loan/loan use: Development facility to fund the construction of 35 apartments in York city centre Exit plan: Sales
Rav Kudhail, lending director at Atelier commented: “We are really pleased to be working with Torsion Group for the third time to deliver this residential development in York city centre. Our first two loans to Torsion were to support them on PBSA developments and we are pleased to be working with them this time to develop new residential apartments in York.”
Ian Worthington, managing director at Torsion Homes said:
“We’re delighted to be working with Atelier again to bring forward this high-quality development in York city centre. As a Group, this is our third loan with Atelier, and once again the team have demonstrated their deep understanding of the development process, moving quickly and collaboratively to get the deal over the line.”
Octane
£2.8M DEVELOPER EXIT LOAN
Octane’s 70% LTV loan is secured against five barn conversion bungalows in Surrey.
The site had £200,000 of build works outstanding before the units could be brought to market, and their client needed more time to finish, market and sell them.
Octane’s loan released £2m net day-one, which was sufficient to repay the development lender and release £400,000 as a capital raise to aid the developer’s cash flow position. A further £350,000 in drawdowns will be released to fund the remaining build costs and to provide a further capital raise which can be drawn at a later stage.
Octane avoided a residual valuation on the site; instead opting to lend against the GDV, which helped to maximise the day one lend.
The case had a myriad of complexities, many of which arose at a late stage. Most prominently was a planning irregularity which needed to be rectified before any of the units could be sold. Octane were able to take a commercial view on these issues to ensure a solution could be provided in the required timescale.
Octane’s 18-month loan was structured with a 1.5% arrangement fee and no exit fees, priced at 0.79% per month (BBR linked). If the base rate were to drop mid-loan term, the pricing automatically re-prices, as Octane’s rates are linked to the Bank of England Base Rate.
The loan was originated by Josh Knight, sales and marketing director, and underwritten by Chris Harrison, senior credit and portfolio manager. Octane’s valuation was completed by Alexander Lawson and they were ably assisted by their legal team led by Seray Kitchingman at Weightmans.
Josh commented: “Our appetite for large developer exit loans is strong, but it is our ability to lend before practical completion which gives us a competitive advantage in this space. Lending against the GDV and providing drawdowns to fund the remaining build costs is a unique approach and it allowed us to deliver a solution which worked for our client.
“And, when a significant obstacle arose late in the transaction, Chris was able to find a solution to avoid derailing the deal.”
Josh Knight
Together
£1.2M COMMERCIAL LOAN
Loan size: £1.2m
Loan term: 10 years interest-only
LTV: 69.6%
Reason for loan: Commercial term to refinance existing business debt and raise funds for future investments
Exit plan: Sale of business and property:
General transaction details: Together provided a total of £1.2m on a commercial term loan to refinance the £994,000 existing business debt held on an office and workshop site in Staffordshire. The customer, introduced by Purdey’s Financial Services, required funds to repay the debt, and raise capital to improve cash flow and invest into additional machinery.
On nearing the completion date for purchase of the industrial site, the unit was down valued leaving additional funds required. Consequently, a second charge loan was arranged, secured against the customers’ four bedroom detached residential home using an AVM, which raised an additional £500,000.
Comments from parties within the transaction: “Our customer needed a solution to quickly raise additional funds so that an opportunity did not fall out of reach.
Through looking the options available, a second charge loan enabled us to crosscharge a further loan secured against two properties. Working flexibly to provide additional funds through a decision backed by common-sense, we were able to find a solution to the problem at pace, and support our business partner, Purdey’s Financial Services customer, with high customer service levels and assurance of funds.” —
Kerry Jordan, regional account manager
Kerry Jordan
MSLG
JULY CASE STUDY
LTV: 66.7% (based on valuation)
74.07% (of purchase price)
Reason for loan: Purchase of a high-value residential investment property
Location: Morpeth
Exit plan: Refinance supported by rental income
Time to fund: Two weeks
Broker/Borrower/Relevant parties:
• Adam Tauber, relationship manager at MS Lending Group
• Mike Watson, underwriter at MS Lending Group
• Adam McGhee, co-founder of DNA Financial Solutions
Our client, a successful business owner, was introduced by the broker to complete the purchase of a substantial residential investment property. The £2m facility supported the £2.7m purchase, secured against a modern home with premium features and strong rental potential.
The borrower plans to let the property long-term, with negotiations already underway for private rental by a football club for player accommodation - offering rental income above market levels to support the planned refinance exit.
Despite the complexity of the deal, including changes to the buying structure and intricate legal elements, in true MS Lending Group style, our team worked closely with all parties to deliver the required funding in under two weeks.
Adam McGhee, co-founder of DNA Financial Solutions commented: "This was a very complex case, with a lot of moving parts, but MS Lending Group made it feel like a standard £100k refinance. Outstanding from start to finish, they bent over backwards to get it done. It’s why we trust them time and time again."
Fairbridge Capital
SUPPORTING BORROWERS WITH EXPERTISE AND COMMITMENT
At Fairbridge Capital, we pride ourselves on delivering tailored lending solutions that empower our borrowers to achieve their property ambitions. This month, we’re pleased to highlight a £676,000 development exit loan that exemplifies our dedication to flexibility, reliability, and partnership.
Loan Size: £676,000
Term: 12 months
LTV: 65%
Rate: 1.05%
Purpose: Development exit and capital raise for two additional investment properties
Exit Strategy: Sale
Transaction Overview: The borrower, an experienced property developer, required funding to exit a development project comprising three newly completed homes in Nottinghamshire: one detached four-bedroom house, and two
three-bedroom semi-detached properties. The loan also facilitated the acquisition of two further investment properties. During our thorough due diligence process, we identified a planning issue: the pre-commencement conditions had not been discharged within the required timeframe, necessitating a resubmission of the planning application. This caused a two-month delay. We maintained close communication with the borrower throughout, offering support and guidance. Once the planning approval was reinstated, we moved swiftly to complete the deal.
We believe in more than just providing capital; we build strong, collaborative relationships with our borrowers and brokers. When challenges arise, such as the planning issue, we remain fully engaged, working proactively to find solutions and keep the process on track. Our ability to adapt to unforeseen hurdles, combined with our expertise and commitment to timely execution, sets us apart. We understand that property development can be complex, and our role is to provide not only funding but also the confidence and support borrowers need to succeed. For more information on how Fairbridge Capital can support your next project, please contact us. We’re here to help you navigate the journey from vision to victory.
Dalian Gill
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