LendInvest streamlines development finance product transfers
Specialist lender LendInvest will let development finance borrowers transition seamlessly between products, in what it declared to be a market-first initiative.
The product transition process allows existing borrowers to transfer easily between specialised loans that are tailored to support them at each stage in their development project.
Ian Thomas (pictured), co-founder and chief investment officer at LendInvest, said: “As a modern mortgage lender, we are continually thinking and devising new innovations that transform for the better how our developers can access the finance they need and move as smoothly as possible through the loan process.
“It is not just a matter of knowing what the borrower needs now, but also confidently anticipating what they will need in the coming months – and even years – that follow.”
Whichever way a borrower needs to transition, the process is said to cut back the cost, complication and time consumption usually associated with refinancing.
Borrowers that transfer from one development finance product to another will speak directly to the same relationship manager, as well as liaise with the same lawyers.
The borrower will also benefit from a shorter application form, reduced underwriting on their subsequent loans and the use of an internal quantity surveyor.
Steve Larkin, director of development, added: “In building this fluid transition process, which exists nowhere else in the market, we ensure that we have even more flexibility to consistently deliver the best service whilst passing on savings in time and money to the borrower.”
Amit Malhotra, a residential property developer and repeat LendInvest borrower, used the product transition service to move from a development finance facility to a development exit loan when his project reached practical completion.
Malhotra, director of Investams, said: “You can only plan so far with a development, any small setback can alter your timeline which can in turn be problematic when it comes to selling.
“This is where LendInvest’s approach to product transition truly set them apart as a lender. Having the option to quickly and painlessly transfer from our initial development loan, to a development exit, gave us the flexibility we needed as well as taking the pressure off rushing a sale.”