Case study
Case study: Securing development finance for a first-time borrower
Background:
- Housebuilder constructing 16 new houses in the East Midlands
- First time requiring funding and needed support navigating the complex lending landscape for development finance
- Quick action was required as the build was already in progress
Introduced by our trusted network, the Leonard Curtis funding team were asked to secure funding to help the ground up development of 16 residential properties.
While the client had experience with other schemes, this was the first time they were looking to borrow and were exploring options to find the right solution for them. Initially, the client had been seeking a peak funding facility however, this approach overlooks the long-term financial commitments required to complete a build scheme. A project of this scale needs to be fully funded from the outset to avoid delays, compromised quality, or unexpected shortfalls later in the timeline.
With initial works already underway, Leonard Curtis had to act quickly and with the right lending partner.
Our Approach:
The Leonard Curtis funding team moved swiftly to assemble a comprehensive lender pack, including full costings and a detailed cash flow model, designed to anticipate and minimise lender queries. This ensured a smooth process and allowed the scheme to be presented transparently and compellingly. As a result, £3.85m in development finance was secured with a debt quantum that satisfied both the lender and the client. The team also efficiently managed the MS and legal processes, achieving swift completion within approximately six weeks of agreement.
The team facilitated several lender meetings and guided the client through the full development finance journey, which helped them clearly understand how a funded scheme works. Errors in the lender’s assessments were challenged, the client’s voice was ensured to be heard, and a security structure was negotiated that aligned more closely with the preferences of the directors and shareholders.
Feedback from the lender:
Working with Leonard Curtis was an excellent experience from start to finish. Although it was the clients first time borrowing from a development funder, Sarah ensured they were fully informed and supported throughout the process, which made the journey smooth and straightforward. What set Leonard Curtis apart was their proactive approach in addressing and resolving any challenges during due diligence, demonstrating both expertise and commitment. In terms of the introduction of business, the client was of outstanding quality, clearly experienced in their sector and takes real pride in their work, which made the overall collaboration even more rewarding.
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Leonard Curtis is a trading style of Reach Commercial Finance Limited, registered at Riverside House, Irwell Street, Manchester, M3 5EN. Company Register number is 09056450. Reach Commercial Finance Limited is authorised and regulated by the Financial Conduct Authority, FRN: 753686. Reach Commercial Finance Limited is an authorised credit broker and not a lender. We work with a an unrestricted number of lenders to find a potentially suitable arrangement for your consideration. ICO registration ZA069234 and you can check via www.ico.org.uk. We will receive commission from lenders. Different lenders pay different amounts depending on different commission models. For transparency we work with the following commission models: fixed fee, fixed rate of commission, percentage of the amount you borrow and rate for risk (this is based on the risk profile of the business). Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey. Privacy notice.
Leonard Curtis Legal Limited is a limited company, registered in England and Wales with registered number 09820186. Registered office: Riverside House, Irwell Street, Manchester M3 5EN. Leonard Curtis Legal Limited is registered with the Solicitors Regulation Authority with number 626004.