The Scenario

The Borrower had obtained planning permission on a property to erect 2 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 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. Whilst the borrower had significant experience in the property market as an investor, he had not undertaken ground up development. Inflow was able to work with the borrower and seamlessly switch the loan to a development facility enabling the borrower to carry out the project with cost of works being funded.

Due to the pandemic the development time frame expanded and the build costs increased. Inflow was able to extend the time frame with no penalties applied, understanding the developer’s requirements and the development opportunity.