The Client’s Initial Challenge:
When our client set out to build a 4-bedroom detached property, he was entering uncharted territory. Although he had a background in property, this was his first full-scale development project – a new build from the ground up, on land purchased from a family member.
As a first-time property developer with no prior experience in construction, he was introduced to Magnet Capital through a broker who, although new to development finance themselves, had heard we were known for guiding clients through their first project.
The Magnet Capital Approach:
Understanding that both the client and broker were new to development finance, we took time to clearly explain every stage of the funding process – from what to expect during the legal phase, to how valuations are conducted, and how to manage staged drawdowns effectively. The client was given direct access to both a BDM and underwriter, ensuring open, responsive communication throughout.
In the end, we provided a total facility of £246,000, which included:
- 100% of the build costs covered
- 47% loan-to-GDV overall
- £55,000 released on Day 1
- Flexible support that allowed us to increase the Day 1 drawdown to suit the project needs
The Power of Partnership:
The client delivered the build quickly and to a high standard, with the completed 4-bedroom family home now listed on the market. What’s more, he’s already preparing to begin his second development project, which we’re proud to be funding again.
The client said:
“Magnet Capital were approachable, trustworthy, and always available. Having direct access to my own BDM and underwriter made a big difference – I felt supported the whole way.“
If you’re a first-time property developer looking for support with yor project and require a strategic funding solution – contact us on 020 8075 3255 or hello@magnetcapital.co.uk.
