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Developer Exit Loans Growing in Popularity 100% Year on Year, Say Top Financial Experts


UK – WEBWIRE

Savvy property developers across the UK are increasingly turning to developer exit loans to keep their pipeline moving and finance their next project figures show. 1st UK Finance, a specialist Property Development Finance provider thatís been working with property developers for over 15 years, has revealed that itís seen a 100% increase in applications for this type of finance in the last 12 months.

The increased interest in developer exit loans has been attributed to a shifting developer mindset and the introduction of second home stamp duty. The 3% stamp duty levy took effect from 1st April 2016 and over the last six months, its impact has become evident to the expert team at 1st UK Finance with applications slowing down, particularly in London and the South East. However, this has been offset by a significant jump in developer exit loans, signaling that developers are still confident in their projects moving forward despite hesitation from buyers.

Zara Mcdermott, Director of 1st UK Finance, explained: ďThe slowdown has obviously impacted property developers, who are sitting on finished projects with capital tied up that canít be utilised to fund the next development. Itís had a knock-on effect thatís created a vicious circle and having a substantial impact on future development. However, developer exit loans have provided a significant opportunity and the 100% year on year increase in demand weíve experienced demonstrates thereís an appetite to push forward with new developments.

ďOur exit loans act as a bridging loan, providing property developers with capital quickly, allowing them to get their cash out and move onto the next development project, rather than waiting until completed properties are sold. In a market where buyers are a little more cautious.Ē

Exit finance provides a flexible way to access cash thatís locked in property, typically up to 75% of the loan-to-value (LTV) can be released and refinanced.

To find out more, visit 1-co.uk.

About
1st UK Finance has been working to provide developers with finance solutions for over 15 years, in the form of bridging loans and property development finance. The brandís new website allows property developers to compare rates quickly to secure the best deal.

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Issued by: Anthony Brindley


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