Developers can take out a non-regulated loan spanning up to 24 months for 90% of the development cost or 65% of the gross development value to build residential or semi-commercial properties in England and Wales.
Larkin, who has been hired as LendInvest’s director of development finance, has spent 26 years at RBS in a number of senior roles in real estate credit, restructuring and origination. Larkin’s last role with the bank was head of residential development within the restructuring team.
Christian Faes, co-founder and chief executive of Lendinvest, said: “The availability of development funds continues to be low, while demand from property entrepreneurs increases. The high street banks that have returned to development in the years since 2008 have a significantly reduced appetite to lend at the smaller end of the market.
“For them, the commercially attractive deals happen in the higher-end, larger-volume, bigger-margin space. Steve has a comprehensive understanding of the whole space and is the ideal person to launch and drive our product forward.”
LendInvest has lent finance for development in the past as an extension of its bridging loan offering, with the lender helping borrowers build or redevelop over 1,200 homes worth £360m in the past year.
Larkin said: “It’s an exciting time to join a fast-growing leader of the alternative lending market. The sub-£10m development market is where fast-moving bridging specialists have the best chance to achieve scale quickly.
“Not only does LendInvest already have over eight years’ experience in this space, this is a sector that is ripe for technology transformation.”
