Timber Frame Development for high-end holiday let
A professional developer, with bags of experience, looking to erect two high-end rental properties near the coast. The construction method was entirely timber frame which creates an issue as a high number of lenders will not accept buildings of that type as security. We needed to plan a route through for development funding, and then the exit on to long term finance.
The development lend was the easier of the two types of lending to arrange. Despite several development lenders not being keen on the construction method, we identified a lender that was competitive to the market in terms of rates and also very flexible around the staging of initial drawdown and were happy come in towards the end of the project if required as the developer had good sized cash reserves.
The exit on to term finance was trickier but we have identified several lenders that would be open to the construction method and from those we can drill down to make the best choice based around valuation methodology. E.g. How many weeks of holiday let income will each lender consider as income to support affordability.
