The new product will permit developers to refinance to Octopus Property and realise a percentage of their profits from a scheme without a hold period.
It will also allow developers to receive cash immediately on each sale they make, while allowing them to move to more competitive terms, therefore maximising profits.
The launch follows the recent 60% and 70% loan-to-gross development value senior development offerings introduced by Octopus Property.
The lender is continuing to overhaul and improve its product range, which is available to both new and existing customers.
“Over the last two years, our development borrowers have been using our bridge-to-let product to give themselves an exit from finance facilities that do not reflect where they have reached in the process,” said D’mitri Zaprzala, head of sales at Octopus Property (pictured above).
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“Having worked closely with our ever-increasing client base to understand their needs, we are delighted to launch this cleaner development exit product, which will give developers significantly more favourable terms for up to 12 months while they sell their properties.”
Key features of Octopus Property’s new development exit include:
• pay rate of 0.58% per calendar month (0.17% interest is deferred until redemption)
• available on loans from £1m
• a maximum loan-to-value of 70%
• an ERC-free period of 12 months.
Octopus Property now provides borrowers with a range of financing products – from acquisition and development through to term lending – as it looks to successfully disrupt the mainstream finance market.
D’mitri added: “We continue to identify new opportunities to provide competitive and flexible senior development finance to a range of borrowers and this development exit product will offer both new and existing customers a favourable solution to best match their requirements.”