New Loan for Developers Seeking Extra Leverage
Property lender Alternative Bridging Corporation is making its development finance product, Development 90, available direct to property investors.
Development 90 provides 90 per cent Loan to Cost on mid-size developments up to £4m. It enables developers to increase their leverage without having to resort to mezzanine finance, making the entire lending process more streamlined with one valuation, one solicitor, one monitoring surveyor and one point of contact.
Development 90 provides 90 per cent of project cost and 75 per cent of Gross Development Value for new build schemes, conversions and refurbishment projects. Loans are available to experienced developers who want to borrow between £500k and £3m. Terms are available from 6 to 24 months, and the interest rate is 1 per cent per month.
James Bloom, director at Alternative Bridging Corporation, said: “Development 90 from Alternative Bridging Corporation is a ground-breaking product for developers who are planning mid-size schemes with a Gross Development Value of up to £4m. It offers a combination of greater leverage, together with a commitment to transparency and low interest rates and is the ideal solution for developers seeking to add an extra project to their portfolio or undertake larger schemes. We have created a development finance product that is accessible and easy to understand for experienced property investors. The terms are simple and straight-forward and we don’t make last-minute changes. We think this will be a breath of fresh air for investors in the development market and we encourage developers looking for greater leverage to get in touch with Alternative Bridging Corporation.”