Case Study 1.
Example Term Loan: £155,000 for development of 30 dwellings, Lancashire, 31% LTV, 1st Charge
Background
Why did the borrower need the loan?
Develop land with outline planning permission for 30 dwellings.
Why couldnt they raise funds from traditional lenders?
Their bank would not take the time to assess the loan, as the project was not immediately cash generative.
Why were we selected?
Our team visited the farmer to understand the collateral, their development plans and proven track record.
Key Loan Terms
Amount:
£155,000
What did we see that
others didnt?
Good collateral, later confirmed by valuation and borrowers with salaried incomes providing robust serviceability.
Term:
24 months
LTV:
31%
Security:
1st Charge
What is the expected exit?
Sale of 1st completed development site and/or the 2nd site once it completes, or partial sale of other land.
Use of Proceeds:
Refinance and raise working capital
Exit:
Sell land or developments
Rate:
8.5%
You can read this update from UK Agricultural Finance on TFF's AGVendor...
Background
Why did the borrower need the loan?
Develop land with outline planning permission for 30 dwellings.
Why couldnt they raise funds from traditional lenders?
Their bank would not take the time to assess the loan, as the project was not immediately cash generative.
Why were we selected?
Our team visited the farmer to understand the collateral, their development plans and proven track record.
Key Loan Terms
Amount:
£155,000
What did we see that
others didnt?
Good collateral, later confirmed by valuation and borrowers with salaried incomes providing robust serviceability.
Term:
24 months
LTV:
31%
Security:
1st Charge
What is the expected exit?
Sale of 1st completed development site and/or the 2nd site once it completes, or partial sale of other land.
Use of Proceeds:
Refinance and raise working capital
Exit:
Sell land or developments
Rate:
8.5%
You can read this update from UK Agricultural Finance on TFF's AGVendor...
