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CapitalRise Lends £3.9M For Luxury Hampshire Residential Development
4th May 2022CapitalRise has completed a £3.9m loan to support the development of a luxury six-bedroom property in Steep, Hampshire.
The 12-month facility, agreed at 62.5% LTGDV, will enable the borrower to complete the development and provide additional flexibility for the sales period. The scheme had previously been partly funded by the borrower before replacement finance was required.
The property under development is a two-storey detached, barn-style home comprising six bedrooms and a heated swimming pool. A separate two-bedroom annex will provide additional accommodation alongside a gym, games room, office, sauna, massage room, pool changing room and storeroom.
The completed development will also incorporate sustainable energy measures.
Enness, which helped arrange the finance, was brought in to secure a replacement lender within a short timeframe after the previous lender experienced pandemic-related issues.
The property and its Hampshire location were considered well suited to CapitalRise's specialist lending focus, with the lender working closely with the borrower to understand the requirements of the project and ensure the development could continue without unnecessary delays.
Providing finance for a development that is already underway can present additional challenges, particularly where contractor timelines and build programmes are involved. The £3.9m facility provided the funding needed to support completion of the luxury residential scheme while also allowing for a sales period contingency.
The transaction demonstrates the importance of specialist development finance when circumstances change during a build, particularly for high-value schemes where a bespoke approach and the ability to move quickly can be essential to keeping a project on track.
