Bridging Finance Solutions has restructured and relaunched, ‘the Hunters Licence’, a finance package designed specifically for developers and investors.
BFS’s Jeanette Jones (pictured) has championed the product, citing a need from the growing development sector as the key objectives behind the launch.
She said: “The development sector is undoubtedly growing, alongside a renewed interest in the property market as we come out of recession and demands grow for homes and commercial buildings.
“The Hunters Licence works for any person who owns an unencumbered property through which we are able to offer a revolving credit facility, using the property as security to release equity. This could support clients with their cash flow or allow them to expand their property portfolio, help finance refurb costs, or provide funds to go towards deposits ultimately enabling 100% of the finance price to be covered. Ultimately the product works as a property overdraft facility leveraging existing equity.”
The Hunters Licence offers a facility up to 70% of the open market value. The client pays the normal setting up fees such as a valuation fee, the arrangement fee and admin fees, paying interest on the monies when they draw down on the funds.
Jones added: “This is an incredibly flexible product. Clients can make capital repayments at any time and the interest charged (at 1.5%) is only payable on the outstanding draw down of funds. The valuation lasts for 12 months.
“We are one of only a handful of companies offering this unique product and believe they’ll be a strong uptake on the Hunters Licence, unlocking monies for small developers who are keen to drive forward with their next scheme whilst finds are tied into current projects or existing portfolios.”
At the end of the 12 months clients can pay 1% to renew the facility, at this point the property would need to be revalued so clients would have to pay for a new valuation.
