Alternative Bridging provides £1.15m revolving facility for York development

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Alternative Bridging Corporation has completed a £1.15 million Alternative Overdraft facility to support the ongoing development of a residential site in York.

The borrower, who was already living in one of the completed units on site, required further funding to continue work on seven part-built homes. All units sit under a single title, and the scheme holds a valuation of £2.8 million.

Despite the strong fundamentals, several challenges complicated the finance arrangement.

The completed unit had not yet secured building control sign-off, due to delays in obtaining the necessary electrical certificate and Energy Performance Certificate. The development was also supported by a Professional Consultants Certificate (PCC), rather than a full structural warranty — a situation that can often slow or derail traditional finance applications.

Alternative Bridging structured the deal as a revolving credit facility secured against the entire site. The Alternative Overdraft structure allowed for staged drawdowns, giving the borrower the flexibility to access funds as required during the build.

The lender also accepted the existing PCC and agreed to defer building control sign-off as a post-completion condition, giving the developer time to resolve the certification issues without holding up the transaction.

The deal completed within 12 working days from initial enquiry to funds being in place.

SALES EXIT

Construction is now progressing on the remaining homes, with the borrower intending to exit via open-market sales.

The flexible nature of the Alternative Overdraft helped mitigate the risk of project delays and enabled the developer to manage cash flow more effectively.

Paul Gavin (pictured), head of sales at Alternative Bridging Corporation, said: “Specialist finance is often about finding solutions where traditional lenders might struggle, and this case is a good example.

“With a mix of part completed units, delays around sign off, and a slightly unconventional setup, it needed a flexible approach. Our Alternative Overdraft gave the borrower the breathing room to get things moving again, drawing down funds when needed without being tied to a rigid structure.

“It’s a really useful option for borrowers in that in-between stage, when bridging feels too short but a long term loan doesn’t quite fit.

“We worked closely with the borrower’s team to keep things moving and got the facility in place in just 12 working days.

“That kind of speed and flexibility can make all the difference for brokers and their clients.”

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