LendInvest’s development finance team has now written 14 deals since launch, ranging from £400,000 to £10 million.
March was the team’s most successful month to date with a number of big development deals completed, including the £5.85 million conversion of an old commercial unit in North West London with a view to obtaining planning for residential conversion over the next three to six months.
LendInvest officially launched into development finance in December 2015, recruiting RBS veteran Steve Larkin as director of development finance to head up the division.
Loans are available to experienced property developers looking for non-regulated finance to build residential or semi-commercial properties in England and Wales. Developers can apply for up to 65% of the gross development value (GDV), up to 100% of the development costs and may be eligible for loans of up to 90% of total project costs. Loans last up to 24 months.
Larkin said: “The performance from such a young team so far has been spectacular. We have made great strides opening up dialogue with new borrowers and brokers, but we aren’t interested in resting on our laurels – we have big plans for this team, and aim to double the volume and value of deals on our books in the next couple of months.
“The small scale development finance market is ripe for some innovation. Our transparent pricing, with no early repayment charges or non-utilisation fees, and our ability to turn around a credit-approved offer in one day means that we can help borrowers to act quickly. All of our development deals are entirely pre-funded; we aren’t reliant on investors filling loans before the borrowers get their money. Speed is incredibly important in today’s fast-paced property market for the smaller developer who is competing with large housebuilders and equity buyers.
“For too long, developers have faced an uphill battle in getting their projects moving, having to fight for funding. In contrast, at LendInvest we trust the expertise of experienced developers. We are on their side.”