Arc & Co. and LBB have supported a repeat SME developer client with funding and warranty solutions for a £1.6m new-build residential scheme in Ashton, near Manchester.
The project, which will deliver three detached two-storey homes, required a carefully structured facility due to complexities around an additional land parcel.
Arc & Co. senior broker Corey Dennis (main picture, left) advised on maximising leverage, securing a £1.12m facility at 70% LTGDV and 84% LTC.
The 12-month loan, priced at 9% per annum, was agreed with flexibility on net loan and rate, and included the support of a local BDM to meet the client on site.
STRUCTURAL WARRANTY
Alongside the finance, the developer also required a structural warranty with a £900,000 sum insured.
Although the client had already sourced a direct quote, LBB senior consultant Oliver Smith (main picture, right) negotiated more competitive terms, securing a premium below the standard 1% of build costs, payable over 12 months.
LBB also ensured the client’s preferred surveyors were accepted and later consolidated four separate indemnity policies into a single policy at the lender’s request, reducing administration and cost.
The collaboration highlights the value of specialist broker involvement, with the client benefitting from enhanced loan terms, improved warranty pricing and streamlined processes.
Both Arc & Co. and LBB said the case demonstrates how brokers can deliver access, flexibility and efficiency that would not have been available by going direct.
