Alternative Bridging Corporation launches Partx Property Finance
Alternative Bridging Corporation has launched PartX Property Finance, a pre-approved part exchange facility to expedite sales and chain breaks on new home developments.
PartX Property Finance will enable brokers to help their developer clients by facilitating the quick sale of newly developed properties. The facility provides developers with the finance they need to complete a part exchange purchase with the buyer of one of their developed properties, accelerating the sales process in an uncertain market.
In addition, PartX Property Finance can provide extra funds for light refurbishment for developers who want to make improvements to the part exchanged property to maximise its resale potential.
The terms of PartX Property Finance are agreed at outset, with all due diligence completed in advance, meaning the loan can be completed quickly and easily when it’s needed, using a short form of valuation, title insurance and a standard legal charge.
PartX Property Finance is available when Alternative Bridging has provided the original development facility or where this has been advanced by another lender.
Jonathan Rubins, director at Alternative Bridging Corporation, says: “We have always been an innovative lender, with ground-breaking products likeDev90 and the Alternative Overdraft, so when we heard the chancellor’s Autumn Statement, it was obvious that the state of the UK economy, and particularly the increased cost of home loans, would cause house sales to slow down and transaction times to extend. There had to be a simple answer to this problem, and we believe PartX is the solution.
“This type of part exchange property finance is good for developers, enabling them to complete a sale swiftly at full value. It’s a win-win situation for the owners of the part exchange property, who are able to sell their property and complete the purchase of their dream home without waiting to find a buyer. And it provides brokers with an additional financial tool they can use to help their clients.
“We want to support our developer clients, some of whom we have worked with for many years, but to also extend this assistance to developer clients of other lenders. PartX enables developers to maintain the rate of sale on their sites and, importantly, to repay their development facilities on time. An added bonus is that the PartX interest rate is likely to be lower than their development loan.”
Michael Cartwright, bridging & development specialist at Buildloan, says: “In a market where there is little real product innovation, it is great to see Alternative Bridging bring another new product to support property investors.
“We have all enjoyed access to their overdraft facility which has been a perfect fit for many of our clients. As we know, quick availability of funds and cashflow has always been key and will be even more valuable this year. It is fantastic to see Alternative Bridging bring another new product to market that will help allow our clients pre-approved funds and allow them to be at the top of the chain and bring certainty to their transaction.
“This product will help in many situations to fit the needs of our clients, whether that is to stop a transaction falling apart due to its chain or help them secure their next development. It’s great to have access to this new product to help support our clients this year.”