Revolving Credit Facility for Property

A revolving credit facility for property developers enables a facility to be drawn down quickly when required and to repay flexibly.

Typical Revolving Credit Facility for Property Developers

  • Facilities available from over £25,ooo to £1 million
  • Borrow up to 60- 75% LTV
  • Fixed or variable rates
  • Terms from 1 – 30 years
  • Secure against single or multiple properties

Why Use Revolving Credit for Property?

A revolving credit facility for property developers allows for unlimited drawdowns from an agreed facility amount with interest only being paid on what you use. This can enable borrowers to quickly use this type of facility to secure an opportunity and then repay whenever convenient without penalty.

Consequently, a revolving credit facility is faster than having to raise an individual loan facility. A revolving facility is automatically renewed and can be used as much or as little as you require during the term of the agreement. However, it is worth noting that some lenders may charge a non-utilisation fee.

Key Features:

FAST – Allows you to secure sites and property much quicker than applying for a new bridge loan or development facility

• FLEXIBLE – Only pay interest on what you drawdown (some lenders may charge a non-utilisation fee) with no early repayment charges

REDUCE FEE COSTS – After an initial arrangement fee to setup the facility there are no ongoing arrangement fees for drawdowns

SIMPLE – Secured against your existing investment property(s) with the valuation usually based on an AVM (automated valuation model). A full red book valaution is only required on a case by case basis.

This can enable borrowers to quickly use this type of facility to secure an opportunity and then repay whenever convenient without penalty

Case Study:

Our client Mr U is a London based property developer that wants to be able to act quickly when a new land opportunity comes up or have funding ready to put into other project cashflow.

  • Security offered is a rented apartment in London, OMV at £750,000 with a mortgage of £340,000
  • The chosen lender provided to 75% loan to value available on the free equity
  • Revolving credit facility agreed at £200,000 on a term of 5 years
  • Any outstanding facility after the first 5 years is mirgrated to a 14 year term repayment loan
  • Facility secured with a second charge

Developer Money Market is an independent specialist in property development funding. We can help you structure property development finance for your next project using a revolving credit facility, development funding, bridging and equity input.

Call us on 0207 096 2003 for an informal discussion or email us via [email protected] Get insights into our range of services at our YouTube channel here.

Do you need equity input? We can help you find a cash injection to your next project from £200,000 to £1,000.000. Read more about equity investment here.

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