Development Finance

Modular Construction Residential Scheme of Twenty Homes in County Durham

£3,800,000 · 16 months · 0.99% pm. An innovative developer was building twenty affordable and open-market homes in County Durham using modern methods of construction - specifically modular factory-built units.

Category
Development Finance
Loan Amount
£3,800,000
LTV
65% LTGDV

The Client

Innovative developer

The Challenge

An innovative developer was building twenty affordable and open-market homes in County Durham using modern methods of construction - specifically modular factory-built units. Most development lenders had no underwriting framework for MMC, leaving the developer unable to fund the scheme.

Our Solution

Doulton's team reviewed the modular manufacturer's warranty, build programme, and quality certifications. A £3.8m development facility was structured recognising that MMC build programmes are shorter but front-loaded in terms of factory costs.

The Outcome

Scheme completed in thirteen months - three months faster than an equivalent traditional build. All twenty units sold within eight weeks of practical completion. Facility redeemed ahead of term with a significant programme saving. Key highlights: MMC/modular construction accepted - full underwriting framework applied; Completed 3 months faster than traditional build equivalent; All 20 units sold within 8 weeks of PC.

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