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In the first of a two-part series, we look at property and development finance outside of the norm. There are two critical elements for projects, funding to ensure completion of the scheme and solutions that facilitate development exit where necessary. We support our clients and introducing partners we work closely with by offering flexible finance solutions that suit the project and the needs of each client. In the 1st of this series, we’ll look at how we can assist with part-built development projects.

Funding part-built developments

As more clients look to maximise their returns and seek to undertake projects and investments that generate additional profits, we continue to help many clients complete part-built developments. Developers may have opted to invest their money first and want to borrow towards the end of the project. There can be several reasons why clients would go down this route, in some instances they are aiming to minimise borrowing costs and reduce the time the loan is outstanding, or it could simply be the result of projects overrunning or unplanned additional costs being incurred.

On paper, you would think the fact that a developer has chosen to initially fund the project with their finances would be viewed positively. Many lenders however will steer away from such projects because they cannot view the scope and expenditure of the project before this finance application. A lender may be wary of the unknown and their inability to review previous works and the perception  – whether right or wrong – can sometimes be that the developer has run out of money when in fact using their finances at the start was a strategic decision.

We can help!

We stress to the networks and partners we work with that it is always worth running by the particulars of a project or development because we appreciate the nuances and unique elements of each development. The lenders we have partnerships with can offer finance solutions, where build warranty inspections are up to date, and an acceptable PCC or warranty will be in place at the end of the project. What this means is we can relay the details to the market and have the knowledge and relationships with those lenders that can offer finance solutions in these instances.

Terms available: 75% LTV or 80% net day one plus drawdowns to cover the remaining work

Dev exit strategy

A significant growth area for Omega and across the market is that of development exit finance to service what has become a strong demand. This can come at various stages of the scheme, whether we are looking at part-built or fully completed listed for sale projects will determine the exact terms available. In some cases where works have progressed and are wind and watertight, we can utilise highly competitive development exit solutions, borrowing against the existing value, and drawing the balance to cover the final works where needed. These solutions enable clients to complete works where needed but importantly release equity for the next project, or simply repay outstanding debt which may be more expensive.

Everything Omega provides terms for is focused on making the lives of our clients easier and breaking down obstacles that may hinder them from completing schemes, buying the next project or reinvesting further.

Fully complete, part complete, or simply planning ahead; whatever stage your development project is at, please do contact one of the team today and we will work to understand the specifics and generate a finance solution tailored to your exact need. In our next blog, we will talk about less standard build types and funding more unusual projects such as barn conversions.