A repeat LBB client, an SME developer based in Huddersfield, approached both Arc & Co. and LBB to support a new ground-up residential development just outside Manchester, in Ashton.
Although the developer already held direct relationships with lenders, he turned to Corey Dennis, senior broker at Arc & Co., for guidance on structuring the facility to maximise the net loan.
The development involved three detached two-storey houses, with additional technicalities around a separate land parcel requiring careful structuring. Corey ensured the legal elements were handled correctly, unlocking the full site value. The result was a £1.12m loan against a GDV of £1.6m, representing 70% LTGDV and 84% LTC, stretching the lender’s usual parameters.
Despite the borrower’s existing direct relationship with the lender, the transaction demonstrated the advantages of broker involvement. These included greater flexibility on net loan, a more competitive rate, and a smoother path to execution. With a rate of 9% p.a. over 12 months and the added benefit of a local BDM able to meet the client on site, the developer secured a facility that was tailored, efficient, and deliverable.
Alongside financing, the developer required a new-build structural warranty with a £900,000 sum insured. Although he had already received a direct quote, Oliver Smith, senior consultant at LBB, highlighted the benefits of a consultative approach.
By negotiating on the client’s behalf, Oliver secured a more competitive premium, below the typical 1% of build costs and payable over 12 months, a structure not usually available when going direct. He also arranged for the client’s preferred surveyors to be accepted. LBB facilitates communication between all parties, ensuring solutions are efficient, transparent, and appropriate.
Later, when the lender required multiple indemnity policies as a funding condition, Oliver consolidated four separate covers into a single policy, streamlining administration and lowering the overall cost.
In short, the broker relationship delivered access, flexibility, and efficiency that the developer could not have achieved alone.
By working with LBB and Arc & Co., the client saved money, obtained enhanced terms, reduced administrative burden, and unlocked additional borrowing capacity. The partnership allowed the developer to focus on building homes, confident that both finance and warranty had been optimised on his behalf.
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