Archives

An Explosive Development

AN EXPLOSIVE DEVELOPMENT A development project in Manchester has proven to be a highly explosive proposition after the developer found a live World War 2 bomb being used as a doorstop! The deal – which was sourced through Crystal Specialist Finance and funded by Affirmative – required the removal of a number of dilapidated buildings prior to the construction of new residential houses. A visit from the bomb squad ensured this task was not completed quickly. But the 300mm long by 150mm diameter bomb was only one of a barrage of problems faced by KAD Developments, with the deal taking over two years to complete. CSF first became involved in June 2017 after the applicant was let down by another lender. Due to initial limited...

Large Residential Development

LARGE RESIDENTIAL DEVELOPMENT We take a look at a large development project case converting commercial offices into residential homes. Crystal secured deals totalling over £9.1m to ensure the successful purchase and development of a largescale residential project for an established property developer. The overall gross development value of the project was over £18m and included a change of use from office (Class B1) to residential (Class C3), which comprised of 33 one, two and three bed dwellings. Solution A £3m bridge was agreed to ensure a successful acquisition of the Grade II listed building, despite a pending planning application decision which was ultimately agreed. This was followed by a further development finance loan structed to clear the existing finance agreement with an extra £1.9m released...

Complex land titles

DEVELOPMENT SAVED WITH NEW LENDER A broker approached us with a client who was looking to finance a development project in South Birmingham. Planning permission for 7 houses and 1 apartment had been granted and the construction had already started. During the initial solicitors’ enquiries, it came to light that there were two areas of unregistered land that fell directly on the dwelling. Even though the client had the relevant indemnities in place to cover this, the lender refused to progress the case and the development was at risk of being aborted. Solution Our development finance team arranged for the new lender’s solicitor to review the land titles prior to the new valuation at no cost to the client. The solicitor advised us to obtain a valuation...