Hope Capital has introduced a new product for residential development exit, offering up to 80% loan to value (LTV).
This development exit finance product enables borrowers who are in a position where their completed residential development is prepared for sale, to switch to a short-term, lower-cost funding option.
The purpose of the product is to provide the borrower with additional time and to relieve any pressure to pay outstanding capital back to the lender if they are unable to do so on time.
The key features of Hope Capital’s new development exit product include:
- Interest rates start from 0.69%
- A maximum loan-to-value of 80%
- 3–18 month term
- Available on loans from £150k to £5m
- Up to 80% OMV considered
Gary Bailey, managing director of Hope Capital, said: “In the current economic climate, with the dual impact of Brexit and Covid-19, both new and experienced investors and developers are facing set-backs due to demand for building materials and labour. Many borrowers unfortunately at times, find themselves in a position where their current loan is coming to an end, however they have not managed to complete the sale of their development on time.
“Investors and developers tend to rely on bridging finance to fund a project, whether that involves covering the cost of building or renovating a property. However, when the sale stalls and the deadline to pay back the loan is missed, this has a huge impact on the profitability of their development, if they are not in a position to tie up the loose ends of their existing finance obligations.
“We recognise this and have created a product which provides brokers and their clients with competitive, flexible and favourable solutions to meet this need and best match their requirements.”
