Product launch

LendInvest launches new development exit product

LendInvest has launched a new development finance product for developers whose project has reached practical completion, but have not concluded the sale of the units.

The exit finance product allows the developers to switch to short-term, lower-cost funding. 

LendInvest’s development exit product has interest charged at 0.7% per calendar month and is available on loans between £250,000 and £5m.

A maximum loan-to-value of 75% applies and there are no early repayment charges. 

Borrowers may be able to retain part of the proceeds from every unit sold.

Matthew Tooth, head of distribution at LendInvest, said it knew that it could be expensive for developers to remain on their development finance loan when they had finished constructing the units, but had yet to sell 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 cash flow and can help with the sale and marketing of the remaining units or go towards starting their next project.”

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