Development exit loans are designed for developers whose project has reached practical completion, and are looking for short-term, lower-cost funding while they conclude the marketing and sale of their property.
In this case, the borrower was an experienced developer who was seven months into a twelve-month development finance loan from another specialist finance lender to fully renovate a two-bedroom apartment in Fulham, Southwest London.
Having reached practical completion, the borrower was looking for cheaper finance until the apartment could be sold. Within three weeks, the lender and borrower moved seamlessly from initial enquiry to full drawdown.
The loan is based on a 70% net LTV and lasts for nine months with rolling interest charged at 0.7% pcm. By moving onto a LendInvest development exit loan, the borrower is saving himself 30 basis points per month in the rate.
Development exit loans were launched by LendInvest in early November. They coincided with LendInvest’s reduction in minimum loan sizes and its expansion to Scotland and northern England, as part of the company’s regional rollout strategy.
Matthew Tooth, Chief Commercial Officer at LendInvest, said:
“Getting our first development exit loan over the line so soon after launch proves that our model works and demand is there. This is just the first of many developers we can help to secure more affordable finance quickly when they reach practical completion on their projects.”
