LDS announces lower fee band and expands criteria to include apartments25th July 2022
New 2.99% fee applies when developers exchange all units on site within 18 months.
Suburban apartment projects between £1.5m and £35m GDV now eligible.
Enhancements come as market uncertainty grows – LDS Sales Guarantees remove sales risk and maximise developers’ equity to keep the industry lending and building.
SME housebuilders have a vital role in fixing the enduring undersupply of new housing. But they need support to build more and, with ongoing cost inflation and emerging pressure on values, the availability of competitive development finance could be about to contract.
The LDS Sales Guarantee provides a solution – unlocking more new homes in all market conditions by increasing the confidence of development lenders and the capacity of developers. It reduces project risk by assuring the purchase of any unsold homes on a site, also releasing a 10% interest free deposit to allow equity to be spread further.
From today, developers will pay just 2.99% of day one GDV for the Sales Guarantee when they exchange all units on site within 18 months – a reduction of 0.5%.
Also with immediate effect, suburban apartment schemes across England and Wales become eligible for Sales Guarantees – allowing more developers, lenders and finance brokers to combine to get more new homes built.
Mark Hawthorn, CEO of LDS Sales Guarantees said:
“In a world of increasing uncertainty, reducing margins and spiraling costs we are proud to be able to reduce our fees and open up more opportunities for SMEs and their lenders. The fee reduction recognises and rewards housebuilder performance, something we strongly believe in. Our decision to open up Sales Guarantees to apartments is simply in response to demand, it is too large an area to overlook. These improvements coupled with our growing panel of lender partners and products will go some way to releasing pressure on SMEs and keeping supply moving”
Story covered in Development Finance Today