Lendhub has backed a major housing scheme in London's Havering Borough with a £1.22m development finance package, paving the way for two four-bedroom semi-detached houses to be built on land owned by the borrower. The move marks significant investment in the region's property market, where demand for family homes remains high.
The 18-month facility will cover the entire construction cost, with drawdowns aligned to the building programme. The project is expected to have a gross development value (GDV) of £1.75m. Cobalt Financial introduced the finance deal, which was influenced by the borrower's outright ownership of the land – providing an equity buffer that shaped the credit structure. Planning consent for the development was granted in June 2025.
The facility is secured at a 13% loan-to-value against the land's market value of £195,000 on day one, and 70% loan-to-gross development value against the scheme’s projected worth. Interest will be rolled up over the 18-month term, including 12 months for construction and six months allocated for sale or refinancing. REA Construction Ltd, an associated contractor, will deliver the scheme on a self-build basis.
Lendhub's relationship associate Jack Hoad said: "We tailored the structure to reflect the borrower's strong position, taking into account clean planning consent, owned land and a credible personal guarantee. This allowed us to size the facility to fund the build comprehensively – rather than just stretching the initial financial position."
The transaction highlights continued activity in London's property finance market, where specialist lenders remain active across both bridging and development finance sectors. The successful arrangement underscores the importance of equity and strong planning credentials in securing favourable development funding for schemes targeting family homes in areas like Havering.