LendInvest offers development exit opportunity

by: Heather Greig-Smith
  • 09/11/2016
  • 0
LendInvest offers development exit opportunity
LendInvest has launched a development exit finance product.

The product, available on loans between £250,000 and £5m, is for developers who have completed projects but not yet sold all the units.

It is priced at 0.7% interest per calendar month, allowing developers to switch to short-term, lower-cost funding. A maximum loan-to-value of 75% applies but there are no early repayment charges and borrowers may be able to retain part of the proceeds from every unit sale.

Matthew Tooth (pictured), head of distribution at LendInvest, said: “We know that it can be expensive for developers to remain on their development finance loan when they have finished constructing the units, but have not yet sold all of them. We’ve introduced this flexible new product to help experienced developers to move to terms that better suit them and ensure they maximise the profit opportunity from their projects.”

He added: “Subject to certain conditions, developers will be able to retain part of the proceeds from every unit sale. This will boost their cash flow and can help with the sale and marketing of the remaining units or go towards starting their next project.”

The news follows LendInvest’s rate reduction on its Tier 1 residential bridging loan range last month. It cut rates by as much as 11 basis points per month.

 

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