Three partners had joined together to develop thirteen new-build houses in a prestigious location in a village a few miles from Telford, Staffs. Construction was undertaken by an associated company of one of the partners under a JCT contract.
ABC was required to provide a loan which would repay a combination of secured loans and reduce one of the partner’s loans, which funds were required for further investment in his business.
At the time the ABC loan was made, four houses had been completed, of which one was the show house, and nine were under construction and sale of two of the properties was actively being negotiated since when the first sale has completed. .