The borrower is an experienced property developer. This loan is to be used for the land purchase with additional funding for the development being provided under loan L69599. The land benefits from planning permission for a detached 4 bedroom, high-specification dwelling.
The gross loan is £91,500 over a term of 12 months on the F6 product which gives a return of 6.5%. 12 months interest payments are included in the advance and will be held on account for lenders.
Security is provided by way of a 1st legal charge and it is proposed that the build will commence immediately upon completion of the purchase of the land.
The OMV for the security is £152,500 (LTV 60%). The GDV for the development is £525,500 giving a LTV of 17.4% based on the GDV.