Need time to sell your unsold stock or recapitalise
Residual stock finance, allows completed but unsold stock in the development to be refinanced for a specified period of time allowing the developer time to sell the stock or use the equity to fund the next project.
General situations for Residual stock facilities are:
- LVR range will depend on the location of the project
- LVR dependent on the number of units/Lots unsold to the number of sold in the development
- units are either assessed as an inline value (All combined in one value) or all individually
- more time to sell stock
- allow for re-capitalisation to start another project
- cheaper rate then a construction facility
- existing lender (Construction) needs to be paid out