HTB funds next phase of North East housing scheme with £3.6m facility

• We’ve completed a £3.6m development finance deal to help build 21 new homes in the North East.
• This is phase two of a residential scheme aimed at first-time buyers and local movers.
• Phase three is already approved and will add another 23 homes to the site.

The funding will help an experienced developer deliver the second phase of a residential scheme designed for first-time buyers, local owner-occupiers and second movers. The homes will be built on a freehold basis, with full planning consent already in place. The deal was introduced and brokered by Mark Nixon at Finance 55, who continues to support the borrower with their ongoing funding needs.

This facility follows our funding of phase one, which has already been completed and sold. It’s structured alongside an existing land loan that supports future phases of the site. As part of the transaction, we worked with the borrower to update the land valuation for the remaining plots and made sure the facility stayed within policy, while still offering the flexibility needed to move ahead with construction.

Russell Higgins, our Lending Manager, said:

Having supported the first phase of this site, we were already familiar with the location, the borrower and the professional team involved. That background allowed us to structure this next facility efficiently and in a way that complemented the existing land funding. It is a good example of how continuity and experience can help move projects forward with confidence.

We’ve also approved funding for phase three, which will bring another 23 homes to the site.

Mark Nixon, Managing Director at Finance 55, said:

It’s a pleasure to support a long-standing client on the next phase of this much needed development. Working with HTB continues to be a positive experience – their team brings a consistent, pragmatic approach that helps get deals done efficiently and with confidence.

Neil Leitch, Managing Director of Development Finance, added:

Having supported the site from its early stages, we were already familiar with the planning structure, the delivery approach and the wider objectives behind the scheme. That understanding allowed us to provide a facility that complemented the land funding already in place and supported the borrower’s next phase of delivery.

Our lending directors are based regionally, which gives us the local context we need to assess risk properly and structure funding that works in practice. It’s that combination of continuity and local insight that helped this project move forward, and we’re pleased to be supporting the next phase.

The deal was managed by Josh Swaby, Russell Higgins, Rob McFarlane, Giosue Vallelonga, John McDonnell and our CQA team.

Read the original story here.