The lending process has been streamlined and, unlike separate mezzanine structures, it only requires one valuation, solicitor, monitoring surveyor and point of contact.
The development 90 offering provides:
- 90% LTC and 75% LTGDV
- finance for new-build schemes, conversions and refurbishment projects
- loans between £500,000 and £3m
- terms from six to 24 months
- an interest rate of 1% per month.
“We believe the time is right to demonstrate our belief in the residential development market, focusing on mid-size schemes with GDVs of up to £4m,” said James Bloom, director at Alternative Bridging Corporation (pictured above).
“Development 90 provides secure funding for developers seeking to expand their activities and avoids expensive joint venture structures or reliance on sales from other schemes to finance their equity.”
The product also can be used by developers looking to add an extra project to their portfolio or undertake larger schemes.
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“We want to build ongoing relationships and so we do not hide behind phrases like ‘interest from’ and ‘LTV up to’; our terms are simple and straightforward.”
The lender’s arrangement and exit fees are quoted at the outset on a case-by-case basis — “there are no last-minute changes,” James commented.
For loans that require slightly less leverage, Alternative Bridging Corporation’s existing products remain available.
“Property finance is our business and has been so for almost 30 years.
“We are innovative and will always try to find new ways to say ‘yes’.”
James joined the lender’s board in January following formal approval by the FCA.
In November 2020, the business reintroduced its overdraft offering, which is part of its bridging and development finance proposition.