Tim Mycock

Lender launches 80% LTV and five-day completion guarantee

Reditum Capital has announced it will now offer LTVs of up to 80% for selected quality assets and has introduced a five-working day completion guarantee as it looks to address a gap in the bridging finance market.

The lender will also be relying on 180 days as opposed to 90-day forced sale valuations on top of removing personal recourse on deals below 60% LTV.

The five-working day guaranteed timescale for the completion of transactions means that once standard documentation has been received, borrowers will be able to benefit from having a fixed timescale to ensure the close of projects. 

These new terms are effective immediately and are in response to the changes in the commercial and residential markets and at a time when conventional senior debt lenders may take longer to conclude deals and act with caution.

“These moves are disruptive, but show that we understand the pressures facing our clients in getting deals completed,” said Tim Mycock, business development director at Reditum Capital (pictured above).

“We are prepared to be fleet of foot in order to meet demands in an industry facing challenges.”

Tim added that although the real estate sector enjoyed stability, the uncertainty surrounding the upcoming general election could hit those looking to process new deals during this period. 

“And that’s why we have opted to utilise 180-day [Royal Institution of Chartered Surveyors] valuations instead of 90-day forced sale valuations and higher LTVs for quality assets is a massive benefit for our customers. 

“We are addressing a significant gap in the bridging finance market, which means borrowers can put less cash into the transaction, leverage the deals that need to be snapped up urgently and, therefore, see a solid return on investment in the long run.”

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