A specialist lender has provided £822,000 in developer exit finance for a residential scheme in Sydenham, South East London. The 12-month loan, arranged by Inspired Lending, is secured against the final two unsold flats in a newly constructed eight-unit development.
The financing, provided to an SPV borrower at 70% loan-to-value with monthly interest at 0.89%, allows the developer to refinance existing borrowing and access capital. This strategy enables the developer to release equity from the completed scheme without waiting for the final sales to conclude.
Gavin Diamond, chief executive of Inspired Lending, noted that developers can have significant capital tied up in final properties even after most units are sold. He stated that this type of financing provides greater control over capital deployment for subsequent projects.
This arrangement reflects a trend among developers managing cashflow across multiple projects, particularly as they navigate tighter lending conditions and evolving credit assessment standards in the property sector.