Seneca Provide £2m Funding for the Fit Out of a £10m Chelsea Residence
Our client required £2m development finance to complete the fit out of a 6000 sq ft property in the heart of Chelsea. The shell and core of the building was almost complete when we were first introduced to the project by a leading development finance broker.
The Problem: A mortgage for the completed property would be achievable, but the developer required development funding to get the property completed to his exacting specification. Having already spent several £m on site purchase and construction, the developer was very keen to work with a development funder who shared his vision for the completed scheme.
The Merit: Despite the complexity of the build and the challenging nature of some of the professional contracts, we were confident there was an experienced team in place and the finished product would be a unique and highly desirable property in an exclusive part of London. Seneca were able to quickly deploy a local surveyor with expertise in that niche of the market, who confirmed our opinion that there was significant value in the finished property to justify a loan of this size.
Our Solution: A £2m development finance facility for 12 months, with an element of flexibility to reflect the borrower’s unique circumstances. Interest and fees have been rolled up to the end of the term – a subsequent refinance with a mainstream lender or sale of the completed property will be used to repay the development loan.
Challenges: Several of the professional appointments needed to be rewritten, or ‘novated’, in order that we could be assigned collateral warranties and step-in rights. This involved a great deal of communication between all parties, coordinated by the experienced intermediary and Seneca’s Relationship Manager. We were ably supported by our lawyers who added value throughout.
The Result: We have now transferred the fourth tranche of funds and we’ve also initiated dialogue between the intermediary and a term lender with whom we are keen to explore refinancing the property on completion.
Diligent Lending | Exceptional Value