Overview
A developer who was loyal to their bank, had a residential development site acquisition settlement coming up and needed a funding solution. But there was a problem…
Challenge
The major bank had declined to provide funding for the acquisition at the LVR that the developer needed. With the “highest & best use” being a future development site, the bank was only willing to provide a 50% LVR.
On top of that, with the developer having expected the bank to approve finance at a higher LVR, by the time the bank rejected the request, time had very much become of the essence (and we all know that while banks have very competitive pricing, acting quickly is not their forte!).
Solution
Given we had a very tight timeframe to work with, our team leveraged our vast panel of non-bank lending partners to identify and secure a viable solution for the client.
After negotiating a few options and carefully reviewing those proposals, we were able to lock down a deal with a private lender who was willing to finance the asset at a 70% LVR.
On top of that, they were willing to offset the interest capitalisation budget with the holding income from the property’s tenants, so that the net advance at settlement was greater than it would otherwise.
Outcome
Most importantly, the lender was able to move quickly to ensure that the settlement deadline would be met.
Our ability to act quickly and pull together a funding solution that enables our clients to progress with their projects on their timelines, is a critical part of our capability offering.
If your bank has left you in a tight spot, give us a call.
