Alternative Bridging Corporation has launched a new stretched senior loan option for mid-size residential developments. 

The product, Development 90, provides 90 per cent of the project cost (loan to cost) and 75 per cet of the gross development value for new build schemes, conversions and refurbishment projects. Loans are available between £500,000 and £3m on terms from six to 24 months. The interest rate is 1 per cent per month. 

Alternative Bridging Corporation says the lending process had been streamlined with simplified terms.  Unlike separate mezzanine structures it said there is one valuation, one solicitor, one monitoring surveyor, and one point of contact. 

Alternative Bridging Corporation director James Bloom says: “Development 90 provides secure funding for developers seeking to expand their activities and avoid expensive joint venture structure or reliance on sales from other schemes to finance their equity.” 

As a result it would be a suitable solution for developers looking to add an extra project to their portfolio or undertake larger schemes, he says.

Bloom adds: “We want to build ongoing relationships and not hide behind phrases like ‘interest from’ or ‘LTV up to’. Our terms are straightforward: 90 per cent of cost, 1 per cent interest per month, with arrangement and exit fees quoted at outset on a case-by-case basis.” 

He adds that for loans requiring less leverage the company’s existing products remain available.