How LDS Sales Guarantees benefit housebuilders, lenders and brokers.
Housebuilders
Reduce cash input, increase output and returns
• 10% LDS deposit is interest free and reduces project cash input
• 67% reduction in cash contribution
• Build up to 3x more new homes
• Increase returns by over 3x
Brokers
Increase conversion, and increase fee income
• Increase conversion by offering increased leverage and quick completion process
• Earn additional fees from LDS
• Simpler, interest free alternative to mezzanine with a fixed fee
Lenders
Reduce deal risk, increase deals done
• Guaranteed exit removes sales risk in all market conditions
• Increase lending to new and existing borrowers
• Maximise the opportunity by creating a joint product
How do LDS Sales Guarantees work?
Before homes are built, LDS contracts to acquire any unsold homes on a site and releases 10% deposit cash, at zero coupon, towards development costs.
Development lenders benefit from an improved credit profile with sales risk eliminated, enabling additional lending. In turn, housebuilders have better access to lending and a 10% deposit, meaning equity can be spread further to deliver more new projects and new homes.
Brokers can improve conversion rates and fees by packaging a higher leveraged, lower risk development loan and LDS Sales Guarantee solution.
LDS Requirements
• Houses or apartments (located outside of city centres)
• All locations England and Wales
• 5 - 60 units per scheme or phase
• Typical GDV range £3,000,000 - £55,000,000
If your site falls outside of these parameters, we may still be able to assist. Please contact us at Info@LDSyoursite.com and we will review.