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Property development

HELPING PEOPLE ONTO THE HOUSING LADDER

A once derelict industrial site has been developed into six affordable homes for first-time buyers.

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Stepstone Limited

Beckenham, BR3, UK

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It's everyone’s responsibility to give back to society. That is the belief of business partners, Vimal Anandpura and Rupal Kapadia of Stepstone Limited, which underpinned a property development project.

Vimal and Rupal purchased a derelict, light industrial site for cash in Beckenham, an area offering good commuting links.  They obtained planning permission to demolish the old industrial building and construct six new apartments. 

The partners registered their development project for the Help to Buy scheme, selling five of the six properties to first time buyers. Rupal explained, “It’s very hard to get onto the property ladder, so being able to help first time buyers was important to us.”

Their desire to make a positive difference also influenced the partners' choice of lender for the project. They borrowed £753,000 from CAF Bank to finance 100% of the build costs. Through a unique feature, one third of the loan arrangement fee was transferred to a charitable cause of their choosing.

This enabled Vimal and Rupal to donate over £3,700 to the Great Ormond Street Hospital Children's Charity (GOSH). Vimal said, “The charitable element of the loan definitely played a key part in our decision about which lender to use.” Rupal added, “I thought it was a great thing for a bank to offer that.”

PROJECT SNAPSHOT

Type of project  New build - Affordable housing for sale
 Loan amount* £753,000
 Loan to Cost** 52%
 Loan to GDV** 40%
 Development loan % 0% of purchase price and 100% of development costs
 Location of development Beckenham, London BR3
 Charity beneficiary Great Ormond Street Hospital (GOSH)

It's very hard to get onto the property ladder, so helping first time buyers was important to us.

Rupal Kapadia
Director, Stepstone Limited

MEETING OF MINDS

Scott Newman, Head of Personal Banking at CAF Bank, said: “When meeting Vimal and Rupal, it soon became clear that we shared similar values.  Helping them convert a derelict site into affordable homes in an area of high demand and low supply, was an ideal project.  Taking the opportunity to support GOSH was the icing on the cake for them (and us).”

Vimal added, “It has been a pleasure dealing with Scott. The whole process has been smooth and efficient. Scott came to the property and was interested to see it progress in the best way. It was more like a friendship than a business transaction.”

CHANGING CHILDREN'S LIVES

Ian Chivers, Director of Finance and Operations at GOSH said, “This donation will make a real difference to seriously ill children treated at Great Ormond Street Hospital and will go towards the most urgent needs. This includes pioneering research to find kinder treatments for complex childhood illnesses, providing lifesaving medical equipment and supporting the hospital's refurbishment to provide state-of-the-art facilities.”


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* CAF Bank loans are non-regulated products.

** The Loan to Cost and Loan to GDV figures stated were correct at the time of loan sanction, but are subject to change during the loan term.

Loan applications subject to credit assessment. Security will be required.

Your personal or company’s assets may be at risk if you do not keep up with the repayments for a mortgage, loan or any other debt secured on them.

If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the term of the debt and increasing the total amount you pay.

CAF Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register number: 204451).

CAF Bank Limited Registered office is 25 Kings Hill Avenue, Kings Hill, West Malling, Kent ME19 4JQ. Registered in England and Wales under number 1837656.