In this case, our Brokerplan partner was approached by a client looking to fund the build of a property in his back garden, he had no experience but he had secured planning for 2 properties with his neighbour across both their back gardens. The neighbour had funds for their part but the client did not.

There were some complex access issues but we managed to get a development bridging lender to take it on faith that these could be worked around.

A first charge was taken on the land with a 2nd on the client’s residence and the lender was able to raise £185k in tranche releases of money to allow the build to go ahead. The rate was not cheap at 1.35% pcm but only paid on funds drawn and there were no QS or monitoring fees.

In terms of the title split and 2nd charge, the client’s bank gave a deed of consent for the title split without needing to reduce their mortgage and also gave consent for the 2nd.

The complex issues meant it took months for the loan to finally come through but the lender released the first tranche of monies last week and then immediately released a 2nd tranche to allow for funds previously spent to be paid back.

1.5% commission + £750 broker fee gave a total fee income of £3,525