The new product will allow developers to refinance to Octopus Property and realise a percentage of their profits from a scheme without a waiting or ‘hold’ period. It features a pay rate of 0.58% per calendar month (0.17% interest is deferred until redemption) and is available on loans from £1m, up to a maximum loan-to-value of 70%.
D’mitri Zaprzala (pictured), head of sales at Octopus Property said: “Having worked closely with our ever increasing client base to understand their needs, we are delighted to launch this cleaner development exit product, which will give developers significantly more favorable terms for up to 12 months while they sell their properties.”
“With the launch of this product we are further enhancing our life cycle lending proposition – in reality this means are now the only specialist financier able to provide a commercial bridge to acquire a site, development finance to build it out, a development exit product whilst the units are sold as well as the option of a medium term product should they wish to hold the units.”
Steven Court, master broker at Promise Specialist Lending said the product offers a “flexible approach” to development exit finance.
“By launching this product, Octopus has completed its product range for development finance,” he added. “The developer can stay with one lender through the whole project, making the whole thing more efficient and cost effective. The product offers a tailored cashflow approach to the receipt of funds which will be warmly welcomed by developers and the deferred interest is an innovative approach.”