CrowdProperty has launched a funding solution designed to give developers greater financial flexibility by eliminating retained interest.
REAL (Residential Expertise Accelerating Lending) was designed to help developers overcome the challenge of slow and complex property development finance processes, which can lead to unwanted delays.
Powered by BUILD, CrowdProperty’s in-house proprietary appraisal tool, REAL aims to simplify the funding process, it also enables liquidity and financial efficiency.
Decisions and loans of up to £500,000 (£750,000 in London) for bridging and light refurbishment projects typically happen within four to six weeks, and feature rolled-up interest, meaning more capital is accessible from day one.
Damon Walford, chief commercial officer at CrowdProperty, said: “Property developers have been plagued by complex and time-consuming funding processes for too long.
“When you combine this challenge with economic uncertainty, planning bottlenecks and supply chain issues, the impact can be catastrophic, particularly for smaller projects
“We’ve combined our specialist industry experience with a decade of data from over 15,000 funding applications, to help developers access streamlined decisions and finance.
“By rolling up interest instead of retaining it, REAL enables developers to optimise cash flow and focus on successful project execution.”
Developers can use REAL for projects requiring bridging finance to complete outstanding work and light refurbishment, including flips.
Bridging loans can also include funding for limited works, with a total repair and development budget less than or equal to 10% of the CMV (purchase and refinance) and purchase price (if purchased).
For light refurbishment, the total repair and development budget can be up to 50% of the CMV, though may require RICS plus an Independent monitoring surveyor.
Walford added: “Historically, it can take six to 10 months for developers to receive the funding green light to progress their plans.
“But with REAL, the funding application window is shortened, giving developers greater clarity on their outputs and empowering them to make informed decisions and keep projects moving.”
