United Trust Bank (UTB) has completed a £2.1m loan to a help a client convert offices into nine flats using permitted development rights (PDR).
The lender was approached in July last year, before the government had extended PDR, when the borrower became concerned that he would not complete and sell the two-bed units by the existing May 2016 deadline.
The borrower was introduced by a well-respected broker and, because he had extensive experience of working to challenging deadlines, UTB was happy to complete the loan which had a GDV of £2.6m and was secured against an unencumbered makeweight security of around £2m.
With little structural work needed, UTB was confident that the development could be completed and sold within 16 weeks.
Noel Meredith, Executive Director at UTB, told Development Finance Today that the project is moving along smoothly.
He said: “Although the government’s October announcement that the temporary relaxation of PDR regulations were to be extended indefinitely certainly took some time pressure off of the borrower, they are nonetheless proving our judgement correct, and the broker’s faith well placed, as the project is proceeding ahead of schedule.”