Glenhawk has completed a £2.85m development exit loan in North Yorkshire, refinancing an existing development facility on a completed residential property. The transaction provides the borrower with additional time to market the asset rather than pursuing a forced sale.
The specialist property lender structured the facility at 71% loan-to-value (LTV) against the property’s open market value (OMV), rising to 80% LTV when measured against the property’s 180-day valuation. The loan was secured against a large house in a rural location.
Market context
The transaction allowed the developer to repay existing development finance and release capital for acquiring a new site. The deal comes as bank lending to smaller property investors drops 14%, highlighting the role of specialist lenders in the current market.
Forest Hall Financial Solutions introduced the transaction, with Annaliese Ellis, business development manager at Glenhawk, originating the loan and Caitlin Nicholson, underwriter at Glenhawk, handling the underwriting.
Ellis noted the transaction reflected the lender’s approach to development exit lending in challenging locations. “This loan is a great example of our development exit appetite. Given that the asset is at a high price point and is situated in a rural area, many lenders were not able to support a loan at this leverage,” she said.
Deal complexity
John Wain of Forest Hall Financial Solutions credited the transaction team for completing the deal despite its complexity. “Achieving this level of leverage at this price point is an incredible result,” he said.
The transaction demonstrates the availability of alternative finance options for property developers in rural markets, where high-value assets and remote locations can present challenges for conventional lending criteria.
