Edinburgh-based packager Thistle Finance has arranged a last minute £1.3m development exit finance loan through LendInvest, for a Berkshire-based developer.
The developer was set to move from his standard development finance rate onto a more punitive default rate on 1 December, which would have added 0.75% to his monthly interest payments.
However, LendInvest development exit finance loan, at around 70% LTV, will save him 0.5% on the standard rate he had been paying. He now has 12 months to sell the office-to-resi conversion of seven flats with no early repayment charges.
Chris Pallis, specialist finance consultant at Thistle Finance, said: “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 were as professional as ever and worked with us seamlessly to get the finance in place before the developer fell onto the punitive default rate.”
“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,” added Ian Boden (pictured), sales director at LendInvest. “The flexible product we’ve introduced enables experienced developers to move onto better terms in order to maximise the profit from their projects.”
Mark Dyason, managing director, Thistle Finance, said: “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. 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.”