Ben* is currently carrying out his second development in the South West with funding from Aldermore. He obtained planning consent for 44 residential units to be built on an existing 2 storey block to create a 4 storey building. Total costs were £5.115m to complete the development and a forecasted end value (GDV) of £6.650m. Ben obtained terms from a High Street funder willing to lend a maximum of £3m (60% of costs).
Aldermore were able to provide 75% of costs and also roll up interest giving a total facility of £3.990m equating to 60% of GDV. Ben therefore only had to contribute circa £1.3m of funds himself as opposed to £2.115m if he had taken the High Street option.
Additionally, during the build, Ben had the comfort of knowing Aldermore would pay out development funds within 24 hours of receipt of QS report, ensuring cash flow is maintained and his on-site team can get on with the development as planned.
*This is an example to show how our lending policy works, please note the customer’s name has been changed to protect their details and all applications will be reviewed on a case by case basis.