Hampshire Trust Bank completes milestone for £1.6 million Norfolk housing scheme

Hampshire Trust Bank (HTB) has completed a £1.6m development finance facility for a residential scheme in Barford, Norfolk, helping an experienced regional developer overcome a series of planning, legal and funding challenges, keeping the project on track for delivery.

The 16-month facility will fund the construction of four new freehold homes, together with the servicing of a further two residential plots. Alongside the homes being funded by HTB, the developer is also delivering an additional property under a separate contract build. Two of the completed homes will be delivered as Discount Market Sale properties, supporting the provision of affordable housing for local owner-occupiers.

The development has also been designed with sustainability in mind, incorporating low-carbon heating systems, nutrient neutrality measures through the purchase of nutrient credits and the installation of a new treatment plant to mitigate environmental impact.

Alongside affordable housing requirements, nutrient neutrality obligations and detailed planning and legal considerations, a key source of funding was withdrawn late in the process, requiring HTB and the borrower to restructure the funding package before the transaction could proceed.

During underwriting, changes within the wider professional team added further complexity before the facility could complete.

HTB worked closely with the borrower and the wider professional team to restructure the funding package. By increasing leverage to 65 per cent LTGDV, alongside additional equity from the borrower, HTB helped put in place a revised funding structure that enabled the scheme to progress to completion with minimal delay.

The transaction was led for HTB by Alexia Evans, Lending Director, supported by Olivia Emmett, Relationship Manager. Savills acted as valuer, Wilson Edwards as Monitoring Surveyor and Glovers provided legal advice throughout the transaction.

The facility establishes a new relationship between HTB and the developer, with discussions already underway regarding future opportunities.

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Alexia Evans, lending director at HTB, said:

“Although the development itself was relatively straightforward, the transaction became significantly more complex as it progressed. Our role was to respond proactively as the transaction evolved, restructuring the funding package and working with the borrower and wider professional team to navigate each challenge while keeping the transaction moving towards completion.

“By adapting the funding structure to changing circumstances, we were able to support the borrower through to completion. That’s exactly what relationship-led development finance is about, and we’re delighted this transaction marks the beginning of what we hope will be a long-term relationship.”

Neil Leitch, managing director of development finance at HTB, said:

“Transactions like this are becoming increasingly common. Good schemes are rarely held back by a lack of demand or developer capability. More often, they encounter evolving requirements, changes to funding structures or unforeseen issues that emerge as projects progress.

“For experienced developers, having a lender that can respond to those challenges can make the difference between a project stalling and a project being delivered. Our role isn’t simply to provide funding at the outset, but to work alongside borrowers as projects evolve and help keep viable developments moving.”