Is Your New Build Property Development Complete And Not Selling?
John Goodwin
Managing Director at Sunrise Commercial Finance Arranging: Bridging Loans, Property Development Loans Single & Multi Unit, Ground Up, Refurbishments, New Developers Accepted, Mezzanine Loans, BTL HMO Mortgages
Well we all thought Brexit would be over one way or the other by next week when March 29th comes around, how naive we were.
The uncertainty has severely slowed down the new build market in London and the South East. With the rest of the country also effected to a lesser degree. This has created problems for developers who are struggling to sell off their completed developments or in some cases to complete the development.
We now have a solution to the problem of refinancing newly build residential developments, a Development Exit Bridge. The loan amount can be up to 75% LTV (Loan To Value) which can be used to pay off the existing development loan and raise capital for new projects.
Interest rates are competitive, in some cases are less than the cost of the development finance. By refinancing it not only takes away the need to sell the properties fast at a cut in asking price, it takes away the worry of the approaching end of the term for the development finance.
Another use for Development Exit Loans is to raise money on part completed developments where the development loan lender has reached their maximum LTV or where they have stopped lending.