When it comes to financing property developments, every case is unique. At Hayes Finance, we thrive on tackling complex scenarios and finding tailored solutions for our clients. One recent example showcases how we supported an experienced property developer in navigating the intricacies of development loans, turning challenges into opportunities.
The Client’s Vision: Growth Through Strategy
Our client, an ambitious property developer, began his journey with Hayes Finance in 2020. Over the past four years, he has successfully completed multiple projects, including new builds and heavy refurbishments. His goal? To continue growing his portfolio by seizing strategic opportunities in a competitive market.
One such opportunity arose with a property in West Wycombe—a house with a large plot purchased in probate. The client had a vision to unlock the land’s potential, dividing the plot and transforming it into a lucrative development.
Challenges in the Journey
The path to success was not without hurdles. The client initially purchased the property for £620,000 in cash but needed to release equity to fund renovations and further development. Hayes Finance stepped in, arranging a bridging loan that released £300,000 to kickstart the project.
A critical turning point came when the client split the title on the property, gaining planning permission for a new build on the divided plot. The original house sold for £1.1 million, allowing the client to advance. However, as is often the case in property development, challenges arose.
- Financing Part-Completed Projects: The new build, nearing completion, required further funding. Most lenders hesitate to release equity on part-finished properties. This presented a significant roadblock.
- The Market Post-Liz Truss Era: The economic turbulence of late 2022 created uncertainty in the property market, complicating sales and refinancing efforts.
The Hayes Finance Solution
Thanks to our in-depth market knowledge and industry connections, we devised a solution tailored to the client’s needs:
- Securing a Development Loan: We arranged a sizeable development loan, structured to allow the client to draw down only the amounts needed at specific stages. This approach minimised interest costs while providing the financial flexibility to complete the current project and begin work on a new one.
- Advocacy with Lenders: When the market slowed and the property didn’t sell as quickly as anticipated, Hayes Finance advocated on behalf of the client to negotiate a loan term extension. This ensured he had the breathing space needed to finalise sales and maintain momentum on his next project.
- Strategic Long-Term Support: Throughout the journey, we provided ongoing advice and support, ensuring the client could navigate challenges confidently.
The Outcome: A Testament to Resilience
With Hayes Finance’s help, the client successfully completed the new build, sold the original property, and secured the barn for his next development project. This case demonstrates the value of persistence, adaptability, and expert guidance in the property sector.
Why Choose Hayes Finance?
At Hayes Finance, we specialise in navigating the complexities of property finance. Whether it’s splitting titles, managing bridging loans, or securing development funding, we work tirelessly to turn challenges into opportunities. Our hands-on approach ensures every client feels supported every step of the way.
Are you a property developer looking to grow your portfolio? Or perhaps you’re facing obstacles in securing funding for your next big project? Get in touch with Hayes Finance today. We’d love to help you achieve your goals.
