LendInvest, a leading specialist mortgage lender, has completed its largest development finance deal to date with an experienced borrower, who will build 66 new affordable homes in West Drayton, Hillingdon, a town set to benefit from a Crossrail station in 2019.
LendInvest has been working with the borrower since June 2016, when it provided a bridging loan to acquire the site, while the client applied for enhanced planning for 53 new homes. The borrower then transitioned to a £17m development loan to finance the construction.
As construction began, LendInvest lent a further £4m to the borrower to acquire a neighbouring site that became available, on which he will build 13 new homes.
The total loan provision for both sites is £21m, with the total gross development value forecast to exceed £31m.
The development is due to complete by autumn 2018, at which point all 26 three and four-bedroom houses and 40 apartments across the two sites will be sold at affordable values, meaning that they will be priced to qualify for the Government’s Help to Buy scheme.
The Owner of Kearns Property Management and Development Ltd, Peter Kearns, comments on the plans: “LendInvest has been a fantastic partner to work with since the beginning of this development. Its flexible approach allowed us to finance the development through from pre-planning to enhanced planning. The team has been brilliant and, more importantly, they are always on hand to help every step of the way.”
Steve Larkin, the Director of Development Finance at LendInvest, adds: “Our role is to ensure we are offering both the products and the service that provides our developers with the funding and support they need at each touch point of their journey. From planning to completion, we know that working closely with a borrower and understanding their end vision is the best way to do this.
“Being able to back such a large development of affordable housing in a prime location is a great feeling. It counts massively towards our overarching goal of tackling the housing crisis in Britain.”