Magnet Capital completes £1.7m development finance loan
Specialist development finance lender Magnet Capital have today announced that they are providing a £1.7m phased facility for a luxury development project near Sandy in Bedfordshire. The project involves a partial new build element as well as a substantial barn conversion, and as such Magnet Capital have provided a phase 1 facility, with a phase 2 top up option that is dependent on a planning amendment being approved.
Magnet Capital’s CEO Ashley Ilsen, pictured, said:
“When looking at the specialist finance industry I’m always amazed that in the current market so few lenders deliberately market what their speciality truly is. As a specialist development lender, we only focus on small development finance projects. We don’t offer any other types of lending because this is where we add value for our clients and broker partners. We are no longer in the age of jack-of-all-trades lending. For this project we had to apply a lot of our development knowledge to provide a solution that will give the clients a suitable cashflow, depending on which planning option they eventually take up.”
Magnet Capital’s Managing Director Sam Howard said:
“The significance of Magnet Capital’s decision makers meeting our clients and introducer partners on site to discuss a project, cannot be underestimated. It is surprising that more lenders don’t do this, as it builds confidence and creates a rapport from day one. From a lender’s perspective, it is invaluable for the decision makers to see the site and the local area with their own eyes, enabling them to quickly ascertain the right lending solution.
Chris Holden, Managing Director of AP Mortgages, brokered the deal and commented:
“Ashley, Sam and the team at Magnet Capital have provided superb support for my client in a development deal with a number of challenges. They have been proactive, flexible and solution orientated. From joining us on site to concluding the deal at their offices Magnet Capital have been incredibly clear about their process and, importantly, once they indicated their intention to fund the deal have not once wavered in their support. The clients have been extremely impressed and as a result Magnet Capital have built a relationship for the long term”
The clients had previously gone all the way through the legal requirements for a lender last year, only to lose fees as the lender went into administration just days before completion was due.