ONLINE mortgage lender LendInvest has launched a new finance product targeting property developers looking to obtain planning permission, with the additional perk of a no exit-fee structure.
The firm, which is member of the Peer-to-Peer Finance Association, will offer pre-construction loans of between £75,000 and £5m and a maximum loan-to-value ratio of 65 per cent to borrowers in the primary stages of a development plan, charging rates of between one and 1.5 per cent per month.
The loan term of up to 18 months is designed to give them sufficient room to navigate planning, which often requires a flexible timeframe, the firm said.
“There can be many hurdles when it comes to acquiring planning permission, so it will be a comfort for borrowers to know that they can rely on a finance product specially designed for what can be an uncertain time in the full development project,” said LendInvest’s chief investment officer Ian Thomas.
“With pre-construction finance loans lasting up to 18 months, our borrowers will have enough time to deal with whatever issues they might come across without a ticking clock behind them.”
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Property developers who obtain funding through the new product would then be guaranteed a fast-track application for further development finance, once their project has been approved by local authorities.
This is the second product the lender has launched this year, following a refurbishment finance product in February.
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