United Trust Bank

UTB funds £1.5m west London site purchase



United Trust Bank’s (UTB) structured finance team has provided funding to allow an experienced developer to purchase a site for their next project.


Located in west London near to a derelict Grade II-listed house, the site has planning permission for the construction of two additional 2,250 sq ft homes in the grounds.

The client was looking to borrow 100% of the £1.5m purchase price and needed the funds quickly to complete the deal.

The security proposed was the site itself as well as the developer’s main residence.

Once finished, it is estimated that the renovated house would have a value of around £2m and the two new homes would be valued at close to £1.2m each.

The developer’s main residence was valued in the region of £2.5m with a minimal mortgage attached.

UTB would take a second charge over the property.

The client also needed evidence that he had sufficient cash to commence work on the site.

The developer’s current project was a four-unit build with a gross development value of £3.1m.

With one unit sold, the outstanding debt was reduced to circa £250,000, while another unit was under offer.

The sale of this and the remaining two units would provide the developer with sufficient profits to fund the renovation and build on the purchased site and leave a surplus.

UTB was also satisfied that the developer was experienced in renovating Grade II-listed buildings and was expected to complete the project – including the new builds – within two years.

The specialist bank funded 100% of the site purchase and the finance term was extended to 24 months with the exit coming from the sale of the completed homes.



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