Developer from West Sussex required development finance for the purchase and construction of a luxury coastal property at the beginning of 2015.
Fast development finance
As 2016 heads towards summer, more and more developers are completing their development projects and are looking for new loans for future ventures. Last year, a client from Chichester enquired about a development loan for the purchase of a plot of land within the nearby town of Bosham. The development site had been offered to the developer on a first-come-first-served basis. Our services were required to enable a quick purchase of the land, securing any future development of the site.
Viability of a project is the key to any development we consider. While Bosham is not known as a commuter hot-spot, the coastal town is only 10 miles from the West Sussex city of Chichester. The town itself though is a coastal hot-spot, drawing wealthy businessmen and their family to the luxury location. Savills Surveyors recently stated that Bosham was one of a few ‘ultra-prime coastal property spots’, with house prices rising by over 10% annually.
With the viability report completed and the site within a prime-location, Hunter Finance offered a loan of £202,000 to secure the purchase of the site. An offer accepted by the developer.
Further development finance for project build
Once the land had been secured by the developer thanks to the initial development loan, our client would require further finance for the construction costs. Development finance would cover the construction of a pre-planned 4 bedroom detached property that sat within the luxury setting of the coastal town. A loan of £330,000 would be required for the build process, bringing the total loan to £532,000.
With the development finance agreed and in place, construction of the detached property could begin.
Initial groundwork and garden wall
Planning considered local residents
Initial groundwork began shortly after development finance had been agreed. One of the first design aspects that needed to be considered – and completed – was a perimeter wall. Alongside the site runs a public footpath that leads directly to the sea-front. While options to open up the land were explored, the best solution was to insert a wall that divided the footpath from the property land. This would eradicate any future issues regarding land rights.
Development finance at work
Hunter Finance loans are broken down into several drawdowns determined by the developer. Flexibility enables the developer to be in control of his own project, with cash made available when he needs it. This allowed the development to progress quickly. With construction progressing quickly, the detached property was put on the market much earlier than anticipated.
On the property market
At the beginning of 2016, the property was placed on the market. The detached home sold for £995,000 long before the project had completed.