Example: Hoxton Mixed-Use New Build

An illustrative scenario: a ground-up mixed-use development featuring 20 residential apartments above commercial space, utilising stretched senior development finance.

This example, based in Hoxton, N1, illustrates how we can structure bespoke funding solutions for development projects across Hackney. In a scenario like this, we would work closely with the developer from initial enquiry, assess the project's viability, identify the most suitable lenders from our panel of over 100, and negotiate terms designed to let the scheme proceed on a commercially attractive basis.

The Scenario

In this example, the developer would require £5.2M of development finance at 65% loan-to-cost to fund this mixed-use new build project. The scheme would typically be structured with staged drawdowns aligned to the construction programme, with a facility term of 18 months to accommodate the build and sales period. The Gross Development Value is illustrated at £8.8M, which would need to be validated through an independent RICS valuation to satisfy lender requirements.

Our Approach

For a scenario of this type, we would conduct a thorough assessment of the project, reviewing build costs against current Hackney construction benchmarks, analysing comparable sales evidence to support the GDV, and evaluating the developer's track record and professional team. This rigorous pre-qualification process is designed to ensure that when we approach lenders, our submission is comprehensive and credible.

Having sourced terms from multiple lenders on our panel, we would present the developer with the most competitive options, clearly explaining the total cost of each facility including arrangement fees, interest, monitoring surveyor costs, and exit arrangements, so the developer can select the option that best aligns with their cash flow requirements and risk appetite.

The Illustrated Outcome

In this example, the facility would be structured to complete within the target timeframe, with £5.2M of development finance secured at competitive terms. The staged drawdown structure is designed to ensure the developer only pays interest on funds actually drawn, keeping the overall cost of finance efficient, with the project targeted for delivery on programme and within budget, in line with the illustrated GDV of £8.8M.