“It was a doddle”
This is how Nic Franklin, described his experience of brokering a deal for his client utilising Pension-led funding.

 The Client’s  situation:
The client came to Nic looking for a £650k development loan to build commercial premises on a site they had already purchased using their own cash via their development company, GDV £1.1m.


They had secured a 15-year pre-let to the Coop & the intention was to sell the investment on completion.

Enter Nic:

Nic had previously  worked with this client, an experienced developer, over a number of years, and once fully briefed,  carried out the usual due diligence, gathering the relevant information to assess the proposal. The wealth statements revealed that the directors both had significant private pension funds, totalling around £1.5m.

He approached four lenders for terms on a ‘traditional’ development loan basis and Clifton Asset Management (CAM) for terms for a Pension-led funding facility.

The lenders responses fell well below the client’s requirement, which would only be achieved if the directors were willing to give security over other properties in addition to the development site.

Nic contacted Tom Whitlock initially to discuss the Pension Led Funding option, following which a telecon was arranged between Nic, the clients, their own IFA and Clifton adviser, Dave Bentley.  This was swiftly followed up by a face to face meeting, after which it became apparent that a PLF facility would be the best solution for the client.

Rationale as to why PLF was the right decision for the client:

  • They were able to raise the full amount required.
  • The client had total control of the funds – they were able to draw down the full amount when they wanted it & there was no requirement for a building surveyor to monitor the scheme as there would have been with a bank-led facility.
  •  The interest charges stayed “in-house” funding their pensions as opposed to a funder.

What happened next?

“Following that face to face meeting, Dave did all the running around, liaised directly with the clients & their IFA to arrange the facility whilst keeping me updated throughout the process.”

Nic only got involved during the negotiations on the fee structure, which were all conducted through Dave.

The client received all of the £650K of funding required.

Nic’s commission from CAM was agreed at just under £1.25% (£8085).

Final words from Nic

“I wouldn’t hesitate to recommend or use CAM / Pension-led funding in the future. Not only was it a good experience and great outcome for my clients, but the process and professionalism from Dave and the team at Clifton Asset Management was second to none.”