The exit bridge offers loans up to £5 million at 70% to 75% LTV
Specialist development finance lender Blend has expanded its product range by introducing a new bridge financing option aimed at supporting property developers.
The exit bridge product offers loans ranging from £500,000 to £5 million, with loan-to-value (LTV) ratios between 70% and 75%. Interest rates for this product are set between 0.95% and 1.1% per month.
Blend may also allow the release of some equity to enable developers to initiate their next projects.
The lender said the development of the new product was in response to the growing issue of deal fatigue in the market, where a slowdown in sales has led some lenders to hesitate or refuse to extend support for projects as loan expiration approaches.
The newly launched exit bridge is designed to support developers in managing their completed residential projects until they can secure a sale at an appropriate price, especially when faced with the imminent expiry of existing loan agreements.
Blend recently secured a new institutional funding line, which represents committed capital aimed at further supporting property developers across the UK.
“For the past seven years, Blend has been supporting mid-size property developers across the UK, and we are very proud to say that we’ve never had to appoint a receiver on any of our developers,” said Yann Murciano (pictured), chief executive at Blend.
“Our business model is based on supporting developers and working with them, not against them. So, where our developers have faced issues with their schemes, we have worked closely with them to find solutions that help them overcome the challenges.
“The launch of our new bridge sends a strong message to those developers: we want to work with you and support you. We want to give you enough time to market your property at the right price, rather than having to fire sale or face the expiry of your facility, which often comes with extremely high default rates and fees.”
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