With the end of 2020 in sight, we take a look at the trends in the financing market and the products we expect to be popular in the coming year.
It comes as no surprise that we have seen many applications from property professionals who have been faced with penalty fees and rates where lockdown has caused delays on site or in exiting through sale or refinance. Proactive developers have approached CrowdProperty for our ‘Development Exit Finance’ and ‘Development Finish & Exit Finance’ products to give themselves time to exit without the excessive penalty fees and rates that plague the development finance and bridging sectors. These products are designed to help you to bridge the period between finishing (or almost finishing) a development project, releasing the commitments of an expiring development finance loan and providing breathing space to achieve the most successful exit for your project.
The new Permitted Development Rights (PDR) that came into force in August meant we saw rising interest in our 'Airspace Development Finance' product which enables SME developers to pursue ambitious and creative opportunities by unlocking the potential development space above existing buildings in desirable locations. We expect this market to continue to grow in order to deliver much-needed housing supply.
Last year, in a market first, we launched our dedicated 'Modern Methods of Construction Finance' product that amongst other things addresses the unique cashflow challenges of MMC construction approaches. MMC also pairs very well with airspace development projects, such as this modular penthouse development over an existing building in London that we funded last year:
We predict that for the rest of the year and into 2021, one of the hottest growth products will be 'HMO & Co-Living Finance' - we particularly excel at funding this type of project, as many of our founders' projects were HMO conversions. We work in partnership with you to put together the perfect package, work alongside you throughout to help your project get completed and can work with you on purchasing portfolios of HMOs.
'Joint Venture Finance' is also likely to become more popular, catering for situations where the developer and an asset owner work together - often where initial price expectations between parties are misaligned but there is alignment to progress the project. This eases cashflow demands, pools both hard asset and knowledge resources and ultimately unlocks more development opportunities. Just imagine if the Waterloo project above was also a freeholder joint venture and an even more powerful hybrid of our Joint Venture Finance, Airspace Development Finance and Modern Methods of Construction Finance all in the same project... this highlights the need for, and the power of, real property expertise from your lender.
We have solutions for all your property project funding needs, providing you with speed, ease, certainty and transparency. This includes a ‘Special Situations Finance’ product where our experts will structure a lending product for you, no matter how complex the project.
Having built the best property project lender in the market, we are building long-term relationships with our borrowers, changing the transactional, hidden-fees, ‘milk this loan’ game that plagues the property project lending market. That’s fundamentally why our borrowers keep returning to fund their next project with CrowdProperty – we’re a true, long-term funding partner and become a valued part of their team, adding value throughout their projects with our team’s hands-on, on-the-ground experience having been SME developers ourselves.
We’re bringing back customer focus, changing the game of property project finance and very much here to help. Let’s get talking even if you haven’t got a project right now such that as opportunities arise, you’ve got the best of the best on your team. Together we build.
Find out more at www.crowdproperty.com
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20 Oct 2020
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