SEE HOW MAGNET CAPITAL CAN HELP YOU...
INITIAL CHALLANGE
Recently, we were approached by a well-established London developer with significant experience in airspace development. Their latest project included constructing nine flats on top of an existing structure.
But, as with many airspace developments, this one came with its challenges: party walls, multiple freeholds, and overage issues they needed to navigate.
After discussions with our experienced underwriting team, we knew we could provide solutions to not only bypass every obstacle but to address various other factors that had the potential to derail the project for the client too.
The Magnet Capital Approach
Throughout the project, we worked closely with the client, holding regular site visits to tackle issues quickly and keep everything moving.
This included negotiating 15 party walls and conducting surveys with the top-floor flat owners located directly next to a local pub. A complex overage agreement was also put in place to address overage issues.
This arrangement was beneficial for both the borrower and the vendor but required coordination among three separate legal teams to ensure all parties involved were satisfied with the protection policies. To minimise the risk that comes with airspace development, we maintained clear communication with the developers. This extra diligence helped ensure safety and reduce disruption for surrounding properties in the area.
With those safeguards in place, we quickly provided a development finance loan of £1.7 million against a Gross Development Value (GDV) of £3.4 million, enabling the developer to begin the project.
The Power of Partnership
Throughout the process, we stayed in close contact with the developer to help keep the project on track and it paid off. The nine flats will soon be going to market, with the client set to make a profit of around £400,000.
If airspace development is something you’re looking to explore, call us on 020 8075 3255 or fill in our online form. We’re always up for turning rooftops into something remarkable.
"This project really sums up why specialist lenders add so much value to the market. We were approached with an extremely complex structure and purchase. There are very few lenders that could have pulled this off, but challenges don’t phase us at Magnet Capital, and we were delighted to get the deal over the line in good time.
