An Alternative to Mezzanine Finance... The Sales Guarantee Scheme

Posted by Restore Finance on 11th February 2021 -

We have a new product that we are offering which helps property developers.

The sales guarantee scheme is similar to mezzanine finance in that it is a smaller facility than your main development loan but the scheme is typically cheaper and not secured on your site.

Our funder will exchange contracts at 10% of the agreed purchase price, generally 80% of the OMV. This exchange is as a sales guarantee as opposed to a pre sale, which means the units can still be sold at OMV.

This releases 8% of your GDV for use towards the development.

Product Details:

• No arrangement fees.
• Experienced property developers only.
• Schemes between 15 - 60 units.
• Houses only.
• GDV between £3m - £20m.
• The cost is from 3.5% to 7% of the GDV.
• No charges on site.
• Fully secured by the borrowers warranty provider.