Bridgedevelopment complete £5.4m planning gain purchase
Bridgedevelopment Property Finance Limited has unveiled the completion of a £5.4m planning gain purchase on a site in West Hampstead supported by LendInvest.
The deal equates to 90% loan-to-purchase costs.
The client had been working on a planning application over the site for over two years, and the lenders’ valuer confirmed the value to be substantially higher on a special situation value, since the likelihood of securing the proposed planning application for 15 luxury apartments was not a case if, but when.
Phil Mabb from Bridgedevelopment Property Finance, said: “LendInvest’s planning gain product was almost unique in the industry, taking a pragmatic view both on value and the planning hope value, hence the strong LTC.
“Despite the current market issues for Prime Central London real estate development, the shadow of Brexit and now the consequences of Coronavirus, LendInvest stood tall – a testament to their underwriters.”
Once planning is granted, the transaction will lead to a £15m development finance facility on a £25m GDV.