The Scenario
An established land developer operating in Melbourne’s western suburbs had commenced a project to develop a four-hectare site into 88 residential lots. The land component was $4.1 million and required a loan of $2.2 million to assist with the purchase. The developer had a strong track record of delivering staged subdivision projects.
The Challenge
The developer needed urgent finance, as their lender had withdrawn funding of their purchase of a Precinct Structure Plan (PSP)-approved development site in Tarneit. They were in rescission on their purchase contract and were at risk of losing their $410,000 deposit.
The Solution
The client was referred to Wefund by their lawyer. Timing was critical and the developer needed to obtain finance fast and at a reasonable rate.
Within 48 hours of the enquiry, Wefund had terms back from a non-bank lender at a 55% LVR. They could settle within five days and were prepared to use the existing valuation, without the need for a new report.
Wefund leveraged their industry contacts and introduced the client and the lender to a legal firm who drafted the loan documents over the weekend. This meant they were ready to be issued to the client’s lawyers on the Monday, a day before the rescission expired.
The Result
Settlement took place on the Monday – in time to avoid expiry of the rescission period. This meant the client avoided losing their deposit, while also giving them the time and opportunity to refinance in a 6-12 month time frame. To top it off, Wefund also saved the client approximately $25,000 in interest when compared to the pricing originally offered by the Lender who pulled out.
Wefund’s relationship with both the lender and the industry lawyers meant that a usually impossible scenario was turned around, to the benefit of all parties involved. As a direct result of their goal and ability to provide extremely fast, transparent and secure funding, Wefund are currently working with the same developer on a new funding arrangement.
What the client had to say
“Without the assistance of Wefund, their dedication and their ability to think on their feet, we would not have been able to settle the property and in the process we would have lost $410,000.”
What’s next?
If you need urgent development finance, we can connect you to lenders for non-bank property development finance at competitive terms and rates.
Register and start an application here – we’ll be in touch soon.
