Hodge expands offering on residential development product
Hodge is making changes to its Residential Development loans to incorporate lending on the alternative residential asset class, including student accommodation and retirement living.
The change comes in response to demand from its clients and brokers seeking funding in this asset class. Having been more tightly focused on pure residential development during the past two years, Hodge is now seeking to expand its reach and fund experienced developers across multiple asset classes.
There’s an active residential market out there with plenty of experienced developers searching for funding for schemes that previously sat slightly outside of Hodge’s appetite. Well, this criteria update will change that.
Gareth Davies, Hodge’s head of development finance, said of the changes: “There is clearly demand for development funding in the alternative residential asset class and, given Hodge’s history and experience in this sector, it makes sense for us to expand our appetite across multiple asset classes.”
This adjustment is a direct result of listening to feedback from clients and introducers, active in this space, and taking action. It is the first of many new products Hodge is aiming to introduce over the coming months as part of a targeted growth strategy across residential and commercial real estate.
Hodge’s Development Finance loan has been created for experienced developers in England, Scotland and Wales with non-complex ownership structures.
The loan is available to Ltd companies, PLCs, LLPs, partnerships and individual borrowers affording leverage up to 80% LTC and 65% LTGDV.
It offers a maximum loan of £5m and a minimum of £1m, over a 24 month term.