Glenhawk has provided a vital £2.85 million boost to a North Yorkshire-based property developer struggling to sell a completed residential property in a rural area. The specialist lender's development exit loan, which refinances an existing facility, gives the borrower breathing space to market the house effectively and avoid a potentially disadvantageous sale.
The loan is secured against a large, high-value house in North Yorkshire at 71% loan-to-value (LTV) against its open market value (OMV), rising to 80% LTV when assessed over 180 days. This type of financing is crucial for developers who need time between project completion and final sale, allowing them to seize optimal market conditions.
The deal also enables the developer to repay their previous development finance, freeing up capital that can be reinvested in acquiring new sites for future projects. This comes at a time when conventional bank lending to smaller property investors has declined by 14%, highlighting the growing importance of specialist lenders like Glenhawk in filling the void left by traditional institutions.
Annaliese Ellis, Business Development Manager at Glenhawk, noted that the deal's complexity arose from the asset's high price point and rural location. She praised Glenhawk's appetite for development exit lending, particularly in challenging locations, showcasing their flexibility and expertise.
John Wain of Forest Hall Financial Solutions, who introduced the transaction, credited the team for navigating its complexities. He described achieving this level of leverage on a high-value property as an exceptional outcome, underscoring the availability of alternative finance options for developers – especially those in rural markets facing hurdles due to standard lending criteria.