Specialist finance provider Octopus Property today announces that it has launched a third residential development exit product, enhancing its competitive and flexible Lifecycle Lending proposition and extending its range of options for borrowers on completed developments.
Octopus Property’s current Bridge-to-Let product set provides borrowers with competitively priced pre-completion financing. The new product will, for the first time, permit developers to refinance to Octopus Property and realise a percentage of their profits from a scheme without a hold period. The product will also permit developers to receive cash immediately on each sale they make, whilst allowing them to move to more competitive terms, thus maximising profits.
It follows on from the recently launched 60% and 70% Loan-to-Gross Development Value senior development finance offerings, as Octopus Property continues to overhaul and improve its range of products available to both new and existing customers, enhancing its unique Lifecycle Lending proposition. Octopus now provides borrowers with a comprehensive range of financing products, from acquisition and development through to term lending, as it focuses on successfully disrupting the mainstream finance market.
Key features of the new development exit product include:
- Pay rate of 0.58% per calendar month (0.17% interest is deferred until redemption)
- Available on loans from €1.11m (£1m)
- A maximum loan-to-value of 70%
- An ERC free period of 12 months
D’mitri Zaprzala, Head of Sales at Octopus Property, commented: “Over the last two years our development borrowers have been using our Bridge-to-Let product to give themselves an exit from finance facilities that do not reflect where they have reached in the process. Having worked closely with our ever increasing client base to understand their needs, we are delighted to launch this cleaner development exit product, which will give developers significantly more favorable terms for up to 12 months whilst they sell their properties.
“We continue to identify new opportunities to provide competitive and flexible senior development finance to a range of borrowers and this development exit product will offer both new and existing customers a favorable solution to best match their requirements,.”