Reditum Capital is a leader in global Bridging and Mezzanine financing for commercial and residential real estate. The company has announced new and disruptive deal terms for their bridging services. These changes have been made in order to respond to the real estate demand for increased flexibility in short term financing. Part of the action is also down to the consumer demand that has come from reverberations that have occurred since Britain’s vote to leave the European Union as well as the upcoming General Election that will take place on the 8th June.
Reditum’s new terms are effective immediately and include LTVs of up to 80% on certain quality assets. This change is an increase from the previously historic rate of 70%. The financing company has also increased its reliance to 180 days instead of the previous 90 day forced sale valuations. It is thought that these new terms will help to address the increased number of challenges that are faced in both the commercial and the residential markets. The changes have been made while the lender remains at the forefront of the industry by getting rid of personal recourse in order to change its approach to lending on deals that are below 60% loan to value.
The company has also introduced a 5 working day guarantee as they acknowledge the importance of time when looking at bridging finance services. Borrowers will be able to benefit from this system because once the standard documentation has been received the borrower will have a fixed timescale in which to make sure the projects are closed.
Reditum Capital have admitted that although these changes in terms are quite disruptive, they are adapting to the pressures in the market that will be facing their clients when getting deals completed. The company is wanting to be able to make changes quickly in order to keep up to date with all the demands from an industry that is facing a number of challenges.