Speculative vs LDS Guaranteed?
See the difference…
Our interactive comparison model illustrates the benefits for
housebuilders, brokers and lenders.
- No cost
- No obligation
- Instant results
Just choose your sector and set the GDV
Speculative vs Guaranteed?
See the difference…
- LDS deposit is interest free and released on exchange
- This reduces housebuilder cash contribution by up to 67%
- Spreading equity further can treble output
- Guaranteed purchase removes sales risk in all market conditions
- Increase lending to new and existing borrowers
- Maximise the opportunity by creating a joint product
- Increase conversion by offering increased leverage and a quick completion process
- Earn additional fees from LDS
- Simpler, interest free alternative to mezzanine with no security required
LDS on a project – housebuilder
Generate Sales Guarantee
Input site details into the LDS Sales Guarantee engine. If it fits our criteria an instant guarantee will be generated, including the amount that LDS will pay for any unsold homes and the deposit sum released at exchange.
Due diligence and approval
LDS will undertake due diligence on the project ahead of confirming approval and instructing lawyers.
Exchange and deposit released
Upon exchange, LDS will contract to purchase any complete and unsold homes on the site and release a 10% deposit into development cashflow.
Construction and sales
Once the homes have been built, in usual course they will be sold on the open market. LDS take a small fee on the completion of each open market sale for providing the Sales Guarantee.
However, should it be required, LDS will complete the purchase of any unsold homes.
“The Sales Guarantee and the initial cash injection completely transformed the viability of the development and increased our capacity for future developments. “LDS gives us the potential to build more much needed homes – we are already looking at other…
“It’s been a pleasure working with LDS from start to finish. “Very professional and easy to pull everything together with Mark Roberts being on hand to answer any questions when they were raised. We are all excited about this scheme…
“A great scheme that works for lenders, giving sales exit comfort and for developers providing affordable upfront cash to enable running multiple projects. LDS are great to work with.”
“I learned about LDS from my broker and quickly saw the benefits the ability to use their 10% deposit and removal of Sales Risk brought to the transaction. They were ready to complete within days of instruction after receipt of…
“It is both refreshing and exciting to have LDS Sales Guarantees in our toolkit when arranging development finance for SME housebuilders. “Not only do Sales Guarantees bring incredible benefits for brokers, lenders and housebuilders but the support and professionalism shown…
“It’s a brilliant product for lenders, developers and finance brokers to consider when structuring finance packages. The right product, right place and time for the market.”
Frequently asked questions
Below are some of the questions we get asked most.
If you have a question that isn’t answered here then please contact us and we will happily answer directly.
LDS was launched with a clear purpose: to empower SME housebuilders to build more new homes.
Why are we needed?
For the government to hit its target and build 300,000 new homes per year, increased access to finance for SME housebuilders is key. LDS created the Sale Guarantee to assure lenders and housebuilders that LDS will acquire any unsold homes on a site. On exchange, a 10% cash deposit is released into development cashflow, unsecured, and at zero coupon. This powerful combination has led to the LDS Sales Guarantee being embraced across the market.
Increase conversion, increase fee income.
- Increase conversion by offering increased leverage and quick completion process.
- Earn additional fees from LDS.
- Simpler, interest free alternative to mezzanine.
Reduce cash input, increase output and returns.
- 10% LDS deposit is interest free and reduces project cash input.
- Build up to 3x more new homes.
- Increase returns by over 3x.
Under 2 minutes. Click here to start.
The LDS Sales Guarantee is provided pre-construction. It assures the purchase of all unsold homes on a development site, then releases a 10% cash deposit on exchange. This removes sales risk, and improves lender credit profile, whilst also reducing developers upfront equity requirement. The unique combination of increased deal leverage and reduced deal risk is a powerful catalyst to new housing delivery across England and Wales.