Paul Tromans

Signature launches new product to help developments complete



Signature Property Finance has introduced a new product aimed at helping developers that are struggling to complete projects due to the pandemic, rising material costs and delays likely to cause cost overruns.

Its finisher facility is designed for developers that need an injection of funds to complete existing residential development sites.

It recognises that the cost and time of transferring existing development finance to a new provider can be prohibitive.

It can be secured with a first charge against developers’ existing unencumbered residential or semi-commercial assets at up to 70% of OMV, and typically takes between two and three weeks to set up.

Development valuations of existing, part-completed sites or QS appraisals for stage releases are not required.

Once the facility is agreed, it operates in similar fashion to an overdraft, allowing drawdowns within 24 to 48 hours.

Loans are available between £250,000 and £1m, with rates typically charged at 0.99% per month on a 12-month loan term, with no exit, admin or non-utilisation fees.

As units are completed and sold, the capital realised from the sale, if not used to repay the existing development finance, can be used to pay down the finisher facility to help reduce interest costs.

Funds can be drawn down or repaid at any time during the loan period.

Paul Tromans, national development manager at Signature Property Finance (pictured above), said: “To complete units, we know developers need to draw the required funds as and when they need them within days, not weeks, and we know they only want to pay interest on the funds used for the time they were borrowed.

“We believe the finisher facility is the perfect solution for the current market conditions, with developments taking longer to complete than planned, which can obviously cause problems and incur unexpected refinance costs.

“The finisher facility does exactly what it says: it helps developers overcome the challenges they currently face and finish development projects at a time when the UK needs them.”



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