Specialist short-term lender Omni Capital has launched a new product called Development Angel – aimed at developers in need of additional funding, or time, to complete stalled building projects.
Development Angel is only for experienced developers for prime-site residential development projects located inside the M25 area.
It is available on a first- or second-charge basis with interest rates from 1.5% per month. Projects must be 65% complete or ‘watertight’.
Loan-to-values are up to 70% of current value based on the gross loan. The minimum loan is £100,000 for periods from one to 24 months. There is no formal maximum.
Colin Sanders, chief executive officer of Omni Capital, said: “Since relaunching Omni Capital’s broker-facing proposition in September, we have become aware of high demand from frustrated developers for a liquidity-injecting product.
“Too many of these highly-experienced professionals find themselves caught in a stalemate position as banks and investors withdraw funding. Omni Capital’s Development Angel is designed to fill this gap by providing the cash necessary to finish the job.
“Our financing can be totally flexible in structure, and could be used to fund completion of developments currently in receivership, or where a rapid solution is needed to avoid senior debt expiry.
“Our message to brokers is clear: we want to be introduced to your clients who are experienced developers with proven track records and viable projects.
“Omni Capital is a real and competitive alternative to the traditional, but now unreliable, sources of finance. We have the expertise, the funding and the appetite to lend.”
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