15 Apr Innovation in uncertain times, the lender approach
The current scenario
Brexit uncertainty consistently remains the overwhelming theme for the UK Property Market. With the announcement of yet another extension to the leave deadline, the conclusion (whatever it may be) which the market should have received on 29th March is still no clearer. The lack of clarity is resulting in labour shortages, cost overruns and unexpected delays which is putting a number of developers in difficult scenarios. In many cases, developers are finding that they are running out of time on their existing development facility in the very late stage of their projects and cannot receive an extension or re-finance onto another development facility, nor can they qualify for a traditional developer exit.
The Avamore response
For Avamore, uncertainty drives creativity and innovation, it provides an opportunity to do something different and work around the existing market trends. Avamore has always been committed to the ‘value-add’ space, focusing more on development lending rather than straightforward bridging. As such, it has taken a dynamic approach to the current situation, identified the needs of today’s borrower and created a solution which draws upon the bridging and development expertise of the credit and underwriting team.
The result? Avamore has been the first in the market to introduce the Finish & Exit product, an innovative reaction to the uncertainty which the market faces.
How does this help?
The Finish & Exit is suitable for a scheme which is not eligible for a traditional developer exit. The Avamore team has the ability to assess cases as a bridge with a development ‘lens’ which means that each case undergoes the correct level of due diligence.
It can be used in the following scenarios:
- When the project has not been sufficiently completed to qualify for a straightforward exit or buy-to-let facility
- If the scheme does not have final building control sign-off or new homes warranties across the scheme
- When there is no build facility remaining in the existing development loan
Notably, the product can also provide a pre-agreed equity release once PC, final building control sign off and new homes warranty is achieved
For Avamore, the Finish & Exit highlights the lender’s commitment to innovate, stand out and deliver on its service driven promises, providing the market with exactly what it needs.