Another project coming on nicely is in Stowmarket, Suffolk.
The client running the site is very experienced as well as being one of our repeat customers. This particular case includes elements of new build as well as conversion and refurbishment. So, it covers all aspects of our lending.
We have been providing development for a significant period of time, way before the previous boom throughout the recession and credit crunch and on going to today. During that time we have gained quite a bit of experience in what clients need and how to look after them throughout the process.
In recent months there has been an increase in the number of lenders providing development finance. While that may seem good for the market, competition is healthy and all that, in actual fact it may provide the client with problems that they can’t see coming.
Funding a development is more difficult than lending against an existing property, obviously. That complexity is best dealt with by those that have experience, just like the building of the property, you really want someone at the helm that has been there and done it. Do lenders used to funding something that is already there know how to deal with the issues that crop up during the build?
In theory, they can say yes. Anyone can say that but as a client you need to think about what happens past the initial quote. The real test is once you are in the build and coming to them for draw downs, (that is if they provide draw downs, of course. We have seen loans to buy a site / property be called development finance even though the funding didn’t extend to helping with the build!) how are they handled, what is the process?
What happens if there is a snag part way through? If they haven’t had to deal with it before, how will they react? It is difficult to make a good decision on the right course of action if you don’t understand the problem.
So, with that in mind, even if you don’t choose us to fund your next project, be wary who you do choose!
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