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The Client’s Initial Challenge
An experienced property developer based in the South East had identified a site to convert an office space into two 3-bed houses and demolish an existing church hall to create a new build. The original planning consent included the office conversion plus one large 4-bed new build.
During an initial site visit, we toured several of the client’s schemes, both completed and ongoing. One completed conversion demonstrated his eye for opportunity: he had purchased with existing planning but cleverly secured consent for an additional unit without compromising the original layout. This strategic move boosted profit on cost by an additional 15%, taking the scheme’s total to over 30%.
For this new project, the client planned a similar approach. He identified the potential to amend planning to replace the single large 4-bed unit with two smaller homes – a move supported by local agents as better suited to the market. This would increase GDV and saleability – resulting in a slight change in build costs.
The Magnet Capital Approach
From the outset, we took the time to understand the client’s vision. When structuring the loan, we based figures on the existing planning consent, while simultaneously modelling the enhanced scheme should the new planning be approved.
This planning meant that when the initial valuer and QS visited the site, they also assessed the uplifted scenario. Midway through the project, once the new planning was granted, we were able to uplift the GDV and build facility, enabling the client to proceed without delay.
The client had the reassurance that additional funding had already been agreed, freeing him to focus on gaining the new planning consent and progressing the office conversion in the first development phase.
By structuring the deal in this way, we provided £763,750 development loan at 65% LTGDV.
The Power of Partnership
By understanding the client’s development strategy and building flexibility into the facility from the outset, we provided the confidence and financial backing needed to unlock the site’s full potential.
This approach meant the client could secure planning uplift mid-project without having to restart the funding process, increase GDV and profitability through smart planning amendments, and focus on delivery, knowing the finance was already in place. With this successful project well underway, we’re already in discussions to support the client on his next site acquisition.
“It was a pleasure working with Magnet Capital to complete a complex deal. Where others were unable to support, Magnet took a proactive and solutions-driven approach. Will and the wider team took the time to fully understand the challenges, including visiting the site and reviewing previous projects, which demonstrated a real commitment to getting the deal done. A highly professional and hands-on lender, and one I look forward to working with again.”
Steve Sanderson
Clever Lending
Working with Magnet was one of the smoothest and most professional experiences we’ve had. From the very beginning, their team was responsive, transparent, and genuinely focused on finding the best solution for our needs rather than pushing a one-size-fits-all product. What really stood out was their efficiency—everything moved quickly without sacrificing accuracy or care. I wouldn’t hesitate to recommend them to anyone looking for a reliable, knowledgeable, and client-focused lending partner.”
