In a move that underscores the enduring appeal of the Cotswolds, United Trust Bank (UTB) has stepped in to back two ambitious housing schemes on the edge of this idyllic region.
With a combined Gross Development Value (GDV) of £35 million, these projects promise to deliver contemporary homes in a setting renowned for its natural beauty and timeless charm.
The borrower, a client with whom UTB has previously collaborated, acquired the sites several years ago at an advantageous price.
Since then, they have dedicated significant time and resources to navigating the complexities of planning approvals and discharging pre-commencement conditions.
Notably, one of the sites was initially burdened by a substantial overage agreement, which the borrower successfully negotiated down, thereby enhancing the land’s value.
The first development comprises twenty 4 and 5-bedroom homes, thoughtfully divided into two phases. Phase one, consisting of 13 units with a GDV of £12.3 million, is supported by a £9.3 million development loan from UTB.
The bank has also factored in the residual land value of £2.1 million for the seven units in phase two, ensuring a comprehensive funding strategy.
The second scheme features eleven 3 to 5-bedroom homes, also split into two phases. UTB is providing £3.6 million to support phase one, which includes two new builds and one conversion with a combined GDV of approximately £3 million.
The residual land value for the eight units in phase two stands at £2.8 million, further underpinning the project’s financial foundation.
Structuring these loans required a meticulous understanding of both the construction and sales strategies for each development.
With both projects now underway, the borrower’s vision is steadily taking shape, promising to add a new chapter to the Cotswolds.