LendInvest launches new development exit finance product
LendInvest, the UK’s leading online mortgage lender, has launched a new development exit finance product.
The development exit product has been designed for developers whose project has reached practical completion, but have not concluded selling the units. This exit finance product allows them to switch to short-term, lower-cost funding.
Key features of the development exit finance product:
Interest is charged at 0.7% per calendar month
It is available on loans between £250,000 and £5 million
A maximum loan-to-value of 75% applies
There are no early repayment charges
Borrowers may be able to retain part of the proceeds from every unit sale
Matthew Tooth, 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.
“Subject to certain conditions, developers will be able to retain part of the proceeds from every unit sale. This will boost their cashflow and can help with the sale and marketing of the remaining units or go towards starting their next project.”
Last month LendInvest reduced the rates charged on its Tier 1 residential bridging loan range by as much as 11 basis points per month.