Second Charge to Fund Development Deposit on New Site in Berkshire
£310,000 · 11 months · 1.03% pm. A developer had agreed to purchase a development site in Berkshire and needed to pay a 10% exchange deposit immediately.
The Client
Developer
The Challenge
A developer had agreed to purchase a development site in Berkshire and needed to pay a 10% exchange deposit immediately. His development finance for the build was agreed in principle but would not be drawn until planning-related conditions were satisfied.
Our Solution
Doulton placed a second charge of £310,000 on the developer's unencumbered commercial property to fund the exchange deposit. This bridged the gap until the development facility was drawn and the deposit recovered at completion.
The Outcome
Exchange deposit paid on time. Site secured. Development facility drawn at month eight upon satisfaction of conditions, repaying the second charge bridge in full. Key highlights: Second charge on commercial property accepted; Exchange deposit bridged - site secured; Development facility drew at month 8 as planned.