By guaranteeing to buy the homes once completed, LDS minimised the risk to the developer and the lender — Pivot Finance — while also reducing the developer’s cash requirement by around 75%.

If the homes are sold on the open market, LDS will receive their 10% interest-free cash deposit back, along with a small fee for its service.

The site has lain derelict for many years and this contract has allowed the developer to complete the works.

Mark Roberts, relationship director at LDS Sales Guarantee, said: “This is a great site to be involved in and it’s certainly not without its challenges, which was a driver for using a sales guarantee.

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“It removes uncertainty and is more attractive to larger or more unusual sites, as they bear more uncertainty and risk.

“Risk removal is very high on lenders radars — especially in a softening market — so we are seeing ever increasing inflows from them. 

“The release of our cash deposit dramatically reduced the developers cash contribution and unlocked progression.

“We look forward to seeing the site come forward and the wider regeneration of this location.”

Marcus Wood, CEO at River Commercial, (the broker involved), added: “Our client was keen to bring forward this site [and] in this volatile market, whilst sale options are available, they come with concerns.

“This contract provided our client with a significant upfront capital provision, [which] greatly aided cashflow and reduced interest overhead.”