Assetz Capital

Assetz Capital and LDS launch development finance package for SME housebuilders

Assetz Capital has partnered with LDS to launch an end-to-end finance package for SME housebuilders.

The package will combine bespoke development loans at up to 75% LTGDV or 95% LTC together with an LDS sales guarantee for the purchase of any completed and unsold homes on a site.

The sales guarantee assures demand for completed homes, while also releasing a 10% cash deposit which allows developers to spread their equity further, thus increasing their capacity to build more new homes.

The joint offering is available for developers of housing or suburban apartment schemes across England and Wales with GDVs between £1.5m and £35m.

Developers and finance brokers will also benefit from a quick approval and contracting process and shared due diligence in order to provide significant cost savings for clients.

In addition, finance brokers will receive both loan and sales guarantee procurement fees, and better conversion rates due to the increased funding levels.

Ben Jenkinson, regional director at LDS, said: “We are excited to launch this alliance today. 

“The product will unlock the delivery of hundreds of new homes across England and Wales and we are pleased to be working with Assetz Capital, a quality lender who shares our passion for supporting SME housebuilders.”

Stuart Law, CEO at Assetz Capital, commented: “Historically, SMEs have been essential to meeting our national housebuilding targets, but the sector has declined in recent decades because of significant economic challenges and a lack of financial support from traditional sources of capital. 

“Today, we are seeing demand for new homes hitting historic levels, while supply continues to lag a long way behind, driving up prices. 

“It is essential for consumers and our housing market that we revitalise SME housebuilding through innovative finance solutions that provide sufficient working capital and de-risk the development process, giving companies confidence to progress with greater certainty of a return on their investment. 

“This is an exciting partnership, which provides further evidence of our commitment to supporting SME housebuilding in the UK in collaboration with like-minded partners.”

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