DEVELOPMENT

Case study 1

1st charge development loan in West Sussex.

LOAN AMOUNT: £757,000

LTV: 64.86%

The borrower was a UK based development company who approached Pivot for funding to purchase a plot of land with planning permission in West Sussex, and develop a detached 2-storey house with separate double garage.

Exit from this deal was through sale of the developed properties once complete.

The borrower had limited experience as this was their first development project, although the experience of the main contractor minimised the risk here. Moreover,  the main contractor was working on another development project on the adjacent land and hence had a vested interest to ensure the development was successful.

We were able to leverage out experience in this case to guide the borrower through his first development project.