The Scenario

The Borrower had obtained planning permission on a property to erect two additional houses on the land. They then attempted to sell the property with the planning gains via auction. The Property did not sell, and the existing lender’s term was soon to expire without the possibility of a loan extension.

Inflow re-bridged the property with a view to the ‘flip’ as the exit strategy. The borrower then proposed that they would like to carry out the development. While the borrower had significant investor experience in the property market, he had not undertaken ground-up development. Inflow worked with the borrower and seamlessly switched the loan to a development facility, enabling the borrower to carry out the project with a cost of works being funded.

Due to the pandemic, the development time frame expanded, and the build costs increased. However, Inflow was able to extend the time frame without penalties, understanding the developer’s requirements and the development opportunity.