Sales Guarantee
We can guarantee the pre sales of all homes on a property development, prior to commencement of construction.
A pre-sale guarantee reduces both project risk and the amount of project equity required. We can guarantee the pre-sales of all homes in a development at 80% of GDV, prior to construction.
A 10% deposit (8% of GDV) can be released into project cashflow, unsecured and interest-free, along with developer equity. This benefits the developer in a number of ways by allowing your capital to be deployed on further schemes, and due to the pre-sale element, it reduces risk for the senior lender.
This gives house-builders better access to lending and means equity can be spread further to deliver more new projects and new homes.
Key Features
An uncomplicated way of accessing funds to commence, continue or complete a property development project.
Questions We Get Asked
Please get in touch with your advisor if you have any more queries.
Contact usWhat is the overall figure that you can guarantee for my development?
We can provide an overall sales figure of 80% of GDV.
Do I also sell the units on the open market?
Yes, homes can be sold on the open market, and upon each sale, the lender will recover the deposit and take a small fee. In the event no homes are sold, the lender will complete the purchase of all the remaining properties.
What are the costs?
For properties that are sold on the open market, there is an 8% deposit return and a 3.49% fee.
Can the sales process be extended?
Lender facility extensions where required can be supported.