This project is a 12 month fully retained bridge facility totaling £700,000 gross. The Borrower has obtained full planning permission for the development of 6 residential units and the facility will enable the purchase of the property whilst pre-commencement planning conditions are satisfied and an overage payment with Homes England is negotiated. Works are not due to start until these matters are satisfied which will likely take a number of months. Interest is fully retained on this raise and Lenders will receive interest at 7.8% per annum equivalent paid monthly. The project is situated in Preston which is located approximately 10 miles West of Blackburn, 17 miles South East of Blackpool, 22 miles South of Lancaster and 33 miles North West of Manchester. Preston had a population of 141,000 as at the 2018 (ONS) however, the estimated population of the wider Preston built up area is 313,322. Preston enjoys good road communications with the surrounding area and regional motorway network, the city being situation on the A59 which runs between Liverpool and York. The M6 is approximately three miles to the East of the city centre. Preston also lies on the West Coast mainline where there are direct long distance rail services to a number of major UK cities including Birmingham, Bradford, Glasgow, Lancashire, Liverpool and London. The Property is located in Fulwood a popular residential suburb approximately three miles to the North East of the city centre. Fulwood Row is a quiet road with large detached housing providing the predominant house type. The Property backs onto the Hills and Hollows Local Nature Reserve. Junction 31a of the M6 Motorway is approximately 0.5 miles to the North but any noise is minimised by the established trees and buildings separating the Property with the motorway. The Property currently comprises a parcel of land which is currently overgrown with vegetation and includes an old unused tennis court. The Borrower has obtained planning permission granted by Preston City Council, planning reference: 06/2019/1397 granted in May 2020 for the development of 6 residential dwellings. Images of the 3 house types are shown along with interior concepts and the development comprises a total of approximately 22,222 sq ft (2,065 sq m). Plot 1 Type 2 Three storey detached five bedroom house extending to 3,229 sq ft (300 sq m) Plot 2 Type 2 Three storey detached five bedroom house extending to 3,229 sq ft (300 sq m) Plot 3 Type 1 Three storey detached six bedroom house extending to 3,229 sq ft (300 sq m) 320 3,444 Plot 4 Type 1 Three storey detached six bedroom house extending to 3,444 sq ft (320 sq m) Plot 5 Type 1 Three storey detached six bedroom house extending to 3,444 sq ft (320 sq m) Plot 6 Type 3 Three storey detached six bedroom house extending to 5,432 sq ft (505 sq m) The planning permission has pre-commencement conditions which need satisfying before development can start and the facility will enable the purchase of the property whilst this takes place. The Borrower will then look to move to a development loan to facilitate the construction of the houses. A small strip of land at the South of the property (blue outlined area on the site plan) is also subject to an overage in favor of Homes England. The Borrower will negotiate this whilst on the bridge with the fallback that they can build the 2 most Southerly units on the site slightly smaller and remove the development entirely from the overage land. The RICS valuation upon which the loan is based has been produced is based upon this smaller scheme as a worst case scenario to protect investors.
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