03 May 2018

The launch of our new residential development-light product

We've launched our new development-light product, to meet the increasing demand from SMEs and smaller developers requiring finance for residential schemes that sit outside the traditional refurbishment or development lending parameters.

The new intermediate development product, for projects with build costs between £0.5 and £1.5 million, is our latest innovative offering as we continue to expand our range to meet the growing demand from property professionals for competitively priced and flexible financing solutions, delivered at speed. It is targeted at schemes that may require more technical support than a typical refurbishment, but are shorter-term, require less monitoring and are lower down the risk curve than a normal development project.

To date we've provided nine loans, totaling £10 million, for a diverse range of schemes, including the conversion of an office in Leytonstone, North London, into 10 apartments where we agreed a £1.4m land loan and a £0.6 million construction facility.

 Key features of development-light product include:

- 8.0% fixed rate per annum

- A maximum loan-to-cost of 85%

- A maximum loan-to-gross-development-value of 70%

- A loan size of £0.5 - 1.5 million

Get in touch with us on 0800 294 6850 to find out more.

We continue to leverage our market knowledge and relationships to better understand the challenges facing property professionals in accessing development finance, and believe that this product is ideally positioned to fill a gap in the market. With wider macro uncertainty affecting the sector, smaller developers are increasingly looking at ways to re-position existing properties to realise value or embark on smaller ground-up schemes which require a new type of funding to match the risk profile of the project.
Gavin Eustace
Head of Development at Octopus Property