The product transition process allows existing borrowers to transfer easily between specialised loans that are tailored to support them at each stage in their development project.
Borrowers that transfer from one development finance product to another will deal with exactly the same team they dealt with when originally applying for their first loan, including the same relationship manager, and the same lawyers and professional team.
The borrower will also benefit from a shorter application form, reduced underwriting on their subsequent loans and the use of an internal quantity surveyor.
LendInvest said it believed this was a market-first initiative and would apply whichever way a borrower needed to transition from one loan type to another.
This includes transferring from pre-construction finance to refurbishment finance, or development finance to a development exit loan.
The lender added that this continuity of service would speed up the administrative process and also meant the professionals facilitating the new loan would be familiar with the borrower and their background.
Taking pressure off
LendInvest co-founder and chief investment officer Ian Thomas said: “As a modern mortgage lender, we are continually thinking and devising new innovations that transform for the better how our developers can access the finance they need and move as smoothly as possible through the loan process.
“It is not just a matter of knowing what the borrower needs now, but also confidently anticipating what they will need in the coming months – and even years – that follow.”
Director of development Steve Larkin added: “In building this fluid transition process, which exists nowhere else in the market, we ensure that we have even more flexibility to consistently deliver the best service whilst passing on savings in time and money to the borrower.”
Amit Malhotra, director of residential property developer Investams, used the product transition service to move from a development finance facility to a development exit loan when his project reached practical completion.
Malhotra, commented: “Having the option to quickly and painlessly transfer from our initial development loan, to a development exit, gave us the flexibility we needed as well as taking the pressure off rushing a sale.”