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Fresh Thinking Capital

Success
Stories.

The Situation.

Loan secured by land to release equity in multiple land assets to support a property entrepreneur’s latest land projects.

One call and the land was gone. That’s how a great opportunity presented itself when our client got a phone call inviting him to purchase a plot of land with a working men’s club attached to it! The call was from a bank who were looking to sell the asset as part of a wider land disposal project across their portfolio.

With a wealth of experience running bars, developing property and having built hundreds of luxury apartments with a stylish contemporary feel throughout the UK, our client had a clear vision for the redevelopment of the site.

With a keen eye, great vision and a substantial purchase discount, the client saw the potential to develop the site into residential units as demand for living spaces in the area was plentiful.

The challenge for our client was that to convert the land into apartments, planning permission was needed. However, the money needed for the planning fees had already been used to buy the land. Therefore, a solution was needed to release the equity within the site with a loan secured by land to fund planning permission for that patch of land and other plots of land that the client owned.

Car House

Where we came in

To avoid any delays in planning, and incurring additional unnecessary holding costs for the sites, the client needed an equity release solution ASAP to get the ball rolling with the required planning consents.

Initially, the incumbent bank was approached for assistance. The bank procrastinated in assessing the client’s funding request, leaving them waiting months before an application was even looked at. With time wasting away, they needed a quicker solution.

When contacted, we didn’t just get back to the client within less than 24 hours, we delivered the required £435,600 they needed for the professional fees in less than 2 weeks! To further bespoke our solution and reduce the client’s monthly outgoings, we accrued the interest and added it onto the loan, to help keep the client’s cash flow healthy.

Amount:
£435,600
Term:
17 Months
Timing:
Completed in 2 weeks
Security:
2x 1st legal charges over land | Personal Guarantee.
Globe

The Result

Through our funding, the client was able to release cash that was tied up in the land in less than 2 weeks, swiftly utilising the cash towards obtaining the desired planning permission. Shortly after, the client agreed on an offer to sell the site to a property developer at a significant margin once planning had been granted. A great example of a land opportunity executed. Creating a win-win for the bank selling the asset, the client and the property developer.

Fresh Thinking Capital