The developer was set to move from his standard development finance rate on to a more punitive default rate on 1st December, which could have added 0.75% to his monthly interest payments.
However, the development exit finance loan provided by LendInvest – at around 70% LTV – will save the borrower 0.5% on the standard rate he had been paying.
The developer now has 12 months to sell the office-to-resi conversion of seven flats at his leisure with no early repayment charges.
“The clock was ticking on this deal, but we managed to get it across the line just in time, saving the developer a significant amount in interest.
- LendInvest partners with UKPA for second proptech influencer list
- LendInvest challenges government to back SME builders
- LendInvest funds its largest development deal in key Crossrail town
“You wonder how many developers are unaware that a more competitive product like this exists for when they have already created the value and are looking to sell,” said Mark Dyason, managing director at Thistle Finance (pictured above).
Ian Boden, sales director at LendInvest, commented: “It can be costly for developers to remain on their development finance loan when they have finished construction and are at the sales end of the project.
“The flexible product we’ve introduced enables experienced developers to move on to better terms in order to maximise the profit from their projects.”
Chris Pallis, specialist finance consultant at Thistle Finance, added: “Switching to LendInvest’s development exit finance loan will not only take financial pressure off the client as he markets the units, but free up capital for future projects.
“The LendInvest team was as professional as ever and worked with us seamlessly to get the finance in place before the developer fell on to the punitive default rate.”