Development Finance team supports the delivery of sustainable housing in Melton Mowbray
Development finance team supports experienced developer with a £4.2 million loan for a 14-unit energy efficient development in Leicestershire.
At a glance
- Specialist team stepped in when another deal with an investor fell through at the final hurdle
- 24-month loan to cover an 18-month build, followed by a 6 month sale period
- The facility was structured with an LTGDV of 53%
- Minimum sale price per unit of £308,000 was set to ensure full loan repayment
An experienced developer based in Leicestershire has secured a £4.2 million development finance facility through our specialist team to deliver 14 energy-efficient, modern homes in Melton Mowbray. The scheme features a mix of bungalows, terraced, semi-detached, and detached houses — all thoughtfully designed with sustainability and modern living in mind. Reflecting strong demand, 8 homes have already been reserved.
The developer had initially intended to partner with a private investor; however, they required certainty of delivery and assurances over terms. They engaged Trust Financial Limited to act as a broker, who, at short notice, worked with Shawbrook to structure a funding solution that met their requirements and delivered the certainty they required in a time sensitive situation.
The case provided a 24-month loan facility, with 18 months allocated for construction and 6 months for the sales period. 95% of the loan was allocated directly to construction costs, ensuring strong financial support during the build phase. The funding structure not only supported the delivery of sustainable housing but also provided a secure financial pathway for the developer to complete and sell the units successfully.
Development Highlights
- Property Mix:
- 3 × 2-bed bungalows
- 3 × 3-bed terraced houses
- 4 × 3-bed semi-detached houses
- 4 x 5-bed detached houses
- Setting: Rural location with nearby golf course and garden centre
- Amenities: Landscaped communal areas around a pond, parking, and strong rail connections
Developer Profile
The founder of Saga Construction UK Ltd brings over 30 years of experience in the construction industry. Starting as a carpenter, and transitioning into contracting and development, forming Saga Construction in 2003. The company has delivered over 100 residential units, with profits reinvested into the business.
Projects recently funded by Lloyds Bank demonstrates capability in delivering high-quality residential schemes across Leicestershire.
When our original funding fell through at the last minute, we were under immense pressure to keep the project on track. The team stepped in quickly and provided a tailored solution for us. They truly understood our vision and requirements, and the process was seamless with Mark supporting us every step of the way.
Mark O'Connor, Portfolio Manager - Development Finance at Shawbrook commented:
"We’re proud to support experienced developers like Saga Construction in delivering high-quality, energy-efficient homes. By stepping in at a critical moment, we were able to provide a flexible funding structure that ensured the project hit its deadlines and aligned with our commitment to sustainable development."
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