An Alternative to Mezzanine Finance... The Sales Guarantee Scheme.
We have a new product that we are offering which helps property developers. The sales guarantee scheme is similar to mezzanine finance in that it is a smaller facility than your main development loan but the scheme is typically cheaper and not secured on your site. Our funder will exchange contracts at 10% of the agreed purchase price, generally 80% of the OMV. This exchange is as a sales guarantee as opposed to a pre sale, which means the units can still be sold at OMV. This releases 8% of your GDV for use towards the development. Product Details:
No arrangement fees.
Experienced property developers only.
Schemes between 15 - 60 units.
GDV between £3m - £20m.
The cost is from 3.5% to 7% of the GDV.
No charges on site.
Fully secured by the borrowers warranty provider.