News

The impact of an elongated sales processes, specifically in the residential market, is an issue we have recently discussed. This continues to prompt increasing enquiries for regulated bridging loans or renegotiating terms as clients navigate longer than expected sales or look to finance works that are taking longer than planned.

Recent Case Study

“Omega were approached to help arrange exit finance of a bridging loan, originally used to convert a property into seven flats, the works and indeed original facility overrunning considerably. Full structural works had finished, minor cosmetic works still being completed, however the client and original funder needed the full debt refinanced asap.

Omega were able to arrange 75% secured against the seven flats, however the outstanding balance was in excess of the net loan available. Through working closely with our client, we were able to understand they not only needed to exit the existing loan, but also move onto their next project. We were able to raise funds against this new project, allowing the full repayment of the existing debt and giving sufficient scope to cover the full works of the new scheme.

Through doing so, this also provides time to enable our client to sell the individual units and maximise profits vs a forced sale or single block sale at a discounted price.”

We support our clients and introducing partners by offering flexible financial options to ensure scheme completion and solutions that facilitate development exit, where necessary. This can extend to assisting clients in completing part-built developments where property finance may be required to meet unplanned expenses or unexpected overrunning of projects.

Securing finance for part-built developments

As more clients aim to maximise their returns and embark on projects that yield additional profits, we continue to assist numerous clients in completing part-built developments. Developers may seek loans towards the later stages, which may look unattractive to lenders, but this is when our introducing partners and clients can take advantage of Omega’s relationships with established lenders.

Development Exit Strategy

At times, clients don’t want to wait or can’t wait until a project has concluded and sold, profits realised and available for onward use, and in these situations, development exit finance allows developers to release funds in an existing project, repay debt due to expire, and move onto the next project. This strategy can be applied at various stages of the scheme, whether part-built or fully completed projects listed for sale, determining the specific terms available. In some cases, where construction has progressed to wind and watertight, we can offer highly competitive development exit solutions. Where further works are still required, we can source and structure terms to see the scheme through to practical completion. These solutions involve borrowing against the existing value and drawing the balance to complete the final works as needed. They enable clients to finalise construction, release equity for the next project, or simply repay outstanding, more expensive debt.

Omega offers commercial finance that simplifies our clients’ lives, removing obstacles that prevent projects being completed and facilitating the purchase of the next development or investment.

Regardless of the development project’s stage – fully complete, partially complete, or just in the planning phase – please contact our team today. We will work to understand your specific needs and create a tailored financial solution for you.