Specialist lender Octopus Property has launched a third residential “development exit” loan product, targeted at completed residential developments.
The new loan will let developers refinance to Octopus Property and realise a percentage of their profits from a scheme without a hold period. It will also allow developers to receive cash on each sale they make, while moving to more competitive terms.
An unprecedented number of unsold flats are completing at the moment, due to oversupply in the prime markets and various economic shocks.
As a result there has been a reorientation of some areas of the residential support markets to assist developers.
LonRes has launched a new service that will put new build flats onto the books of London walk-in estate agents.
D’mitri Zaprzala, head of sales at Octopus Property, said the product would give developers more favourable terms for 12 months while they sell their properties.
“Over the last two years our development borrowers have been using our Bridge-to-Let product to give themselves an exit from finance facilities that do not reflect where they have reached in the process.”
The new product is available on loans from £1m with a maximum LTV of 70%.
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