The Hunters Licence offers a facility up to 70% of the open market value with the client paying the normal setting-up fees, such as a valuation fee, while paying interest on the monies when they draw down on the funds.
The product has been led by Jeanette Jones, senior business development manager at BFS, who cited the growing development sector as the key objective behind the launch.
“The Hunters Licence works for any person who owns an unencumbered property through which we are able to offer a revolving credit facility, using the property as security to release equity.
“This could support clients with their cash flow or allow them to expand their property portfolio, help finance refurb costs, or provide funds to go towards deposits ultimately enabling 100% of the finance price to be covered.
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“Ultimately the product works as a property overdraft facility leveraging existing equity.”
At the end of the 12 months, clients can pay 1% to renew the facility, as at this point the property would need to be revalued so clients would have to pay for a new valuation.
Jeanette added that the Hunters Licence was an incredibly flexible.
“Clients can make capital repayments at any time and the interest charged (at 1.5%) is only payable on the outstanding draw down of funds.
“We are one of only a handful of companies offering this unique product and believe they’ll be a strong uptake on the Hunters Licence, unlocking monies for small developers who are keen to drive forward with their next scheme, while [funds] are tied into current projects or existing portfolios.”