Inspired Lending provides £822,000 developer exit facility

Inspired Lending has completed an £822,000 developer exit loan for an SPV borrower in Sydenham, South East London, refinancing existing borrowing and releasing funds for other property projects already under way.

The 12-month loan was agreed at 70% LTV, priced at 0.89% per month and secured as a first charge. The security comprised the final two flats within a new build eight-unit scheme, following the sale of the first six properties.

With both remaining units on the market, the borrower had a clear route to repayment. The structure meant equity held within the completed scheme could be released and redeployed elsewhere in the developer's portfolio.

The developer was able to refinance and access funds at an earlier stage, rather than having to wait for the final two sales.

"The final few sales can take time and developers have to think about what comes next in the meantime," said Gavin Diamond, CEO at Inspired Lending.

"If there are other projects already under way, being able to release equity from a completed scheme can give them far more control over how they deploy their capital rather than making the next stage dependent on the timing of individual property sales.

“That's where developer exit finance can be particularly useful."