Struggling To Raise Development Finance?
Check out the benefits of Collective Investment Schemes, a viable alternative source of much needed capital.
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Development Finance
Projects within the M25 motorway
GDV £2m - £10m
Interest - Base + 2 - 4% per annum
Profit Share - Investor 35/65 Developer
Family housing
Apartments
Arrangement fee - Bank 1% + Monyy 1%
Exit Fee - 1% of loan
Gross Profit Margin must show - 20% on total cost (before bank interest)
Higher geared conventional lending with pre-sales guarantee by investor
Here is one of the most innovate lending products we have seen for some time. This lending product is higher geared senior debt provided by High Street banks, and guaranteed by a High Net Worth (HNW) investor pre-approved by the banks.
The HNW investor exchanges contracts with you the developer, up-front, buying enough of your proposed development to cover all the senior debt provided + arrangement fees.
This is effectively a pre-sale to a contracted HNW investor, and allows the High Street bank to provide higher gearing than normal, at standard interest rates, whilst reducing the amount of equity you need to invest to 25% of total costs.
The pre-sale normally involves a legal exchange of contracts with you the developer plus payment of a 5% cash deposit.
The lending bank has the security of full legal completion from the pre-approved HNW investor. The HNW investor takes the equivalent of c 35% of the profit as a reward for his cash investment + valuable guarantee.
Due to the innovative nature of this lending product, its availability is restricted to projects within the M25 motorway only.