Development finance clients contacted us after being offered a plot of land within the town of Bosham, five miles from Chichester.
The developer wanted to make a purchase upon the land quickly, securing it for future detached property development.
Interest for Bosham property has grown significantly over the past few years. Property within an area, and within 10 miles of Chichester, is in high-demand with house prices growing by up to 10% annually.
Savills Surveyors recently stated that the West Sussex town was one of a few ‘ultra-prime coastal property spots’ within the UK. The Daily Mail listed Bosham as one of the best places to live by the sea.
Prime development land can yield large profits from investment. With this in mind, the developer was keen to secure the site. We were able to provide an initial £202,000 loan – including a funds guarantee to the seller – which enabled the developer to make the purchase.
Once the land had been secured, the developer wanted to get started on the construction of a 4 bedroom detached property. The build cost for the development was £330,000. Hunter Finance would distribute the development funds in multiple drawdowns over a 12 month period. This increased the total loan for the development of £532,000.
Construction of the detached development began shortly after the building finance had been agreed. Any works had to consider an existing public footpath that ran alongside the property. Any issues of conflict were resolved with the planning of a 1.6m wall to separate the public footpath and the development.
This also added value to the property, by secluding the area for any potential buyers.
Our quick drawdowns enabled the developer to progress with the construction of the development site without any unnecessary delays. Completion of the project was achieved within the 12-month framework.
Sale of the property had been agreed before the final construction work had been completed.
Detached properties are popular within West Sussex, especially coastal towns such as Bosham. This meant that the market value of the property was above £900,000. The 4 bedroom detached house sold for £995,000, meeting the predicted GDV.
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