LBB and Arc & Co. showcase collaborative strength on £1.6m residential project
A repeat LBB client – an SME developer based in Huddersfield – began talks with Oliver Smith, Senior Consultant at LBB, to support a new ground-up development just outside Manchester, in Ashton.
Project Overview
Developer: SME developer based in Huddersfield
Location: Ashton, Manchester
Development: Three detached two-storey houses
Build Cost: £900k
LBB Consultant: Oliver Smith
The developer required a new-build structural warranty with a £900,000 sum insured. Although he had already obtained a direct warranty quote, Oliver demonstrated the benefit of LBB consultative approach.
By negotiating on the client’s behalf, he secured a more competitive premium – below the typical 1% of build costs, payable over 12 months – a structure not usually available when going direct.
The added value was not only financial. Oliver also arranged for the client’s preferred surveyors to be accepted. LBB facilitates the relationship between all parties in the case, working towards a solution that is efficient, communicative and suitable.
Later, when the lender required multiple indemnity policies as a funding condition, Oliver was able to consolidate four separate covers into a single policy – streamlining administration and reducing the overall cost. In short, the broker relationship delivered access, flexibility, and efficiency that the developer could not have achieved alone.
On the finance side, the client wanted more than a lender introduction. Despite having direct relationships with lenders, he turned to Corey Dennis, Senior Broker at specialist debt and equity advisory Arc & Co., for his guidance and expertise on how to structure the facility to maximise the net loan.
The development involved three detached two-storey houses, and technicalities around an additional land parcel meant careful structuring was required. Corey ensured the legal elements were handled correctly, unlocking the full value of the site. The result was a £1.12m loan against a GDV of £1.6m – representing 70% LTGDV and 84% LTC, stretching the lender’s usual parameters.
Despite the lender already holding a direct relationship with the lender, this transaction reflected the benefits of broker involvement, which included flexibility on net loan; a more competitive rate; and a smoother process to execution. With a rate of 9% p.a. over 12 months, and the added advantage of a local BDM able to meet the client on site, the borrower secured a facility that was tailored, efficient, and deliverable.
This project underlines the tangible value of using specialist brokers. Despite being knowledgeable and connected in their own right, by working with LBB and Arc & Co., the client saved money, gained access to enhanced terms, reduced administrative burden, and unlocked additional borrowing capacity – benefits that simply wouldn’t have been available by going direct. The partnership allowed the developer to focus on building homes, knowing that both the warranty and finance had been optimised on his behalf.
This case study is intended for professional clients and does not constitute personal advice or a financial promotion to retail customers.
The London Belgravia Group Provides Risk and Insurance Advisory Solutions to Global Property Developers. London Belgravia Brokers Ltd, t/a LBB, is an appointed representative of Ten Insurance Services Ltd t/a Eleven Network, which is authorised and regulated by the Financial Conduct Authority
