How does LendInvest define a “development” for a Development Exit loan?
A development in this context is either the conversion or creation of new residential units, or a project that involves the repayment of a formal development loan facility.
How can we help you?
4. Development Exit finance
What do I need to provide to meet LendInvest’s definition of “practical completion” for a development?
Building regulation and new build certificates have to be in place to meet our definition of practical completion.
Does LendInvest allow me to capital raise from the development exit loan proceeds?
Yes, a capital raise is allowed for further investment into another project, or for another purpose that we choose to accept; provided the overall criteria for the loan is met.
Will LendInvest accept an exit other than sale for a Development Exit loan?
No, the exit must be sale.
If I want to roll the interest up into the loan for repayment, where will LendInvest cap the initial (day 1) loan?
We will cap the initial (day 1) loan at a maximum of 70% of the market valuation. In addition, if you are rolling up and not servicing the interest, we will limit the value of the initial (day 1) loan so that the loan, including all the rolled interest, does not exceed 75% of the initial market valuation during the term of the Development Exit loan.
Does LendInvest require the title of the development site to be split?
No.
Does LendInvest require long leases to be in place for new flats/apartments?
No.
What happens if a development is not quite complete yet?
Either we can give you terms for a Development Exit loan subject to practical completion taking place before we complete the loan, or we can look to offer you terms for a bridging loan to cover the period to practical completion and then transfer you over to a Development Exit loan once practical completion is reached.