Alternative Bridging launches 90% LTC development product
Alternative Bridging Corporation has launched the Development 90, a stretched senior loan for mid-size residential developments, providing 90% loan-to-cost (LTC).
The lending process has been streamlined and unlike separate mezzanine structures, there is one valuation, one solicitor, one monitoring surveyor and one point of contact.
Development 90 provides 90% of project cost and 75% of loan to gross development value (LTGDV) for new-build schemes, conversions and refurbishment projects.
Loans are available between £500,000 and £3m, on terms from six to 24 months, and the interest rate is 1% per month.
James Bloom (pictured), director at Alternative Bridging Corporation, said: “Development 90 from Alternative Bridging Corporation is a ground-breaking product for the mid-size development market, offering a combination of 90% [LT] and stretched LTGDV with a commitment to transparency and low interest rates.
“We believe the time is right to demonstrate our belief in the residential development market, focusing on mid-size schemes with GDV up to £4m.
“Development 90 provides secure funding for developers seeking to expand their activities and avoids expensive joint venture structures or reliance on sales from other schemes to finance their equity.
“It is the ideal solution for developers seeking to add an extra project to their portfolio or undertake larger schemes.
“We want to build ongoing relationships and so we do not hide behind phrases like ‘interest from’ and ‘LTV up to’.
“Our terms are simple and straightforward – 90% of cost, 1% per month, with Arrangement and Exit Fees quoted at outset on a case-by-case basis. There are no last-minute changes.
“For loans that require slightly less leverage, our existing products remain available. Property finance is our business and has been so for almost 30 years, we are innovative and will always try to find new ways to say ‘yes’”