Bristol Development - Ground up

4.75m GDV

LTGDV 70%

LTC 80%

4 UNITS.

Case Study: Bristol development - Completed

Client: A seasoned property developer with a portfolio of high-end residential projects.

Challenge:To rapidly secure finance for a prime land acquisition and subsequent development, capitalising on a time-sensitive opportunity.

Solution:Always Wright Mortgages structured a bespoke development finance facility through one of the biggest lenders, efficiently bridging the funding gap and enabling the project to commence without delay. Result:The successful acquisition of a £1.2m asset for £800k, with full funding secured for a build-to-sell project boasting a significant gross development value (GDV) of £4.5m. A fifth plot was applied for with planning to add to this exceptional project.

The Opportunity and The Challenge

Our client identified a highly promising opportunity: a parcel of land in Bristol with detailed planning permission for five ultra-high-specification detached properties. The land was available for a below-market price of £800,000, despite an independent valuation of £1.2 million, presenting an immediate £400,000 in equity upon purchase.

The developer’s vision was to construct 4 individual £1 million homes, projecting a total Gross Development Value (GDV) of £4.5 million. However, with total project costs (including land purchase and £2.2m in build costs) estimated at £3 million, they required a sophisticated and agile financing partner to unlock this substantial profit potential. The challenge was to move quickly to secure the land and then arrange a single, seamless finance facility to cover the entire development process.

The Always Wright Mortgages Solution

Recognising the complexity and tight timelines, Always Wright Mortgages immediately engaged with our specialist lending panel. We identified a prominent UK development finance lender known for its flexibility and developer-focused approach, as the ideal partner.

We presented a compelling case to the lender, highlighting the key strengths:

· Instant Equity: The below-market land purchase provided an immediate, solid foundation of security.

· Robust Financials: The projected GDV of £4.5m against total costs of £3m represented a healthy profit margin and a strong Loan-to-GDV ratio (circa 66%), well within the lender’s risk parameters.

· Developer Expertise: Our client’s proven track record instilled confidence in the project's delivery.

Always Wright Mortgages negotiated a tailored development finance facility structured in two key stages:

1. Acquisition Finance: West One provided the initial £800,000 to complete the land purchase swiftly, securing the valuable asset for the client.

2. Rolled-Up Development Facility: A further £2.2m was agreed to cover all construction costs, legal fees, and interest. Crucially, this interest was “rolled up” into the loan, meaning no monthly payments were required, thus protecting the developer’s cash flow throughout the build phase