Client seeking to use some surplus cash and pensions, to purchase a plot of land and build a single new build house on it. Client bought the site for £250k using their own funds.
Client has a further £100k of own funds but needed a development loan of £135k to fully cover all build costs 100%
We arranged the development loan, with a 6 month term, end result the client can draw down on the development funds as and when needed, to ensure the build program doesn’t get delayed through lack of funds.
Client expects to sell the property for £800k upon completion, with build costs at £235k and site purchase at £250k, they still expect to see £200k profit ( before taxes).
The longer term plan is to repeat this each year for the next 5 years and then retire with a healthy pension pot !