A major barrier to SME housebuilders increasing output is the amount of equity required for projects – our Sales Guarantee helps solve this problem.
How it works. Pre-construction, LDS exchanges contracts with the SME housebuilder to acquire any completed and unsold homes on a site. A 10% deposit can also be released into project cash flow, interest free.
Development lenders benefit from an improved credit profile with sales risk eliminated, enabling additional lending. In turn, housebuilders have better access to lending and a 10% deposit, meaning equity can be spread further to deliver more new projects and new homes.
Brokers can improve conversion rates and fees by packaging a higher leveraged, lower risk development loan and LDS Sales Guarantee solution.
Benefits to you
How LDS Sales Guarantees benefit housebuilders, lenders and brokers.
Housebuilders
Reduce cash input, increase output and returns
- 10% interest free LDS deposit reduces project cash input by up to 67%
- Build up to 3x more new homes
- Increase returns by over 3x
Lenders
Reduce deal risk, increase deals done
- LDS guaranteed purchase removes sales risk in all market conditions
- Increase lending to new and existing borrowers
- Maximise the opportunity by creating a joint product
Brokers
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
Find out more, I am a...
Speculative vs guaranteed?
See the difference…
| Speculative | Guaranteed | |||
|---|---|---|---|---|
| GDV | £10,000,000 | £10,000,000 | ||
| Total Cost | £7,700,000 | £7,700,000 | ||
| Lender Debt | £6,500,000 | £6,500,000 | ||
| Lender Loan to GDV | 65% | |||
| LDS Deposit Release | £0 | £800,000 | ||
| Total Funding | £6,500,000 | £7,300,000 | ||
| Total Funding to GDV | 65% | 73% | ||
| Total Funding to Cost | 84% | 95% | ||
| Housebuilder Cash Contribution | £1,200,000 | £400,000 |
- £800,000 LDS deposit reduces housebuilder cash contribution by 67%, allowing equity to be spread further and output increased by up to 3x.
Working with
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 built, in usual course, homes will be sold to the open market and, upon each sale, LDS will recover its deposit and take a small fee. However, should the housebuilder require, LDS will complete the purchase of any unsold homes.
What our
clients say
“LDS Sales Guarantees enhance the return on equity for a developer as well as the number of projects they can undertake on currently. “The ability for interested parties to produce online proposals are second to none; combined with their inhouse…
“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.”
“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…
“Mark and the LDS team not only provided an extremely good product that allowed a complicated and difficult transaction to complete but were also flexible in adapting their approach to accommodate a number of what seemed insurmountable last-minute hurdles. “The…
“The LDS Sales Guarantee is a unique source of additional funds for development finance. We are currently nearing completion with several clients using Sales Guarantees with notable lenders.”
Your questions answered
Managing Director, Ben Jenkinson answers some frequently asked questions about the LDS Sales Guarantee and how it benefits housebuilders, lenders, and brokers alike.
More frequently asked questions are answered here.
If you have a question that isn’t answered, 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.
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.
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.
Reduce deal risk, increase deals done.
- Guaranteed exit removes sales risk in all market conditions.
- Increase lending to new and existing borrowers.
- Maximise the opportunity by creating a joint product.
Under 2 minutes. Click here to start.
The sooner we become involved the more benefit we can deliver. You do not need to own the site for us to provide you with a Sales Guarantee and financial projections. It is common for developers, lenders and brokers to involve LDS as part of their initial review process which is often before a site is acquired. A Sales Guarantee and its associated benefits can be the difference when reviewing sites for purchase or financing.
Our preferred criteria is:
- Houses and apartments (located outside of City Centres), across England and Wales
- 5-60 units per scheme or phase, with GDV levels of £1,500,000 – £35,000,000
- We can only guarantee open market sales and not affordable units, although we will require the details
If your site falls outside of these parameters, we may still be able to assist. Please contact us at info@LDSyoursite.com and we will review.
We do not take a charge over the site as it can interfere with lenders’ security. Our contract is registered, as is standard for any potential purchaser.
We can allow our 10% cash deposit to be released at exchange, which has a transformative effect on viability. In addition, we work with a number of lenders and brokers, who are well versed in the benefits of LDS, so can make the introduction should you require.
The Sales Guarantee is simple, and each unit will have one of two outcomes. If a unit is sold on the open market LDS take a small fee at completion for providing the guarantee. If LDS acquire then there is no cost for this service. All other costs will be borne by each party.
In the first instance, when using our online Sales Guarantee engine, we will take the developer’s anticipated values as the start point. If the site is looking to progress, we will complete our own due diligence to confirm the values as well as considering any professional valuation carried out for lenders. There is only one property market therefore the figures we derive are generally in line with the developer projections.
Our Sales Guarantee is for the site. So, in the unfortunate event of a default, the lender would be able to maintain the benefit of the Sales Guarantee which should expedite their exit in default.
We understand that post-PC is often the best time to sell and wanted to ensure developers retained the benefit of this. The run-off period gives the developer a generous period post-PC to dispose of any remaining units. At anytime within this period the developer can call upon LDS to complete on unsold units and exit the site.
Simply serve us a completion notice, exactly the same as any other sale.
LDS is part of Landmark Group, which is into its third decade of investing under our founder and CEO. The Group and CEO place an immeasurable amount of value in our well-earned reputation as reliable and straightforward investor partners. Our core portfolio consists of over 25,000+ properties approaching £200m in value. We have substantial financial resources and always ensure all participants are comfortable before entering into any transaction.
We would look to retain as long-term investments on a rental model basis. Our wider Landmark Group owns a large and constantly growing investment portfolio so is always ready, willing and able to acquire further stock.
We work with a vast number of lenders and we’re adding more all the time. Please contact us for details of our panel lenders and exclusive deals. Also, if you would like to discuss joining our lender panel or creating a bespoke product with a guaranteed exit then please contact Ben Jenkinson, Managing Director at LDS at ben.jenkinson@LDSyoursite.com.
LDS are the only provider of Sales Guarantees in the market and have invested many years and devoted significant funds to bring forward the concept. There is no comparable offering and the use of Sales Guarantees is transforming how developers and lenders approach new sites.
We have conducted extensive research to interrogate the pros and cons, working with developers, lenders and a host of professional advisors. In rare instances where a developer is not using debt and is funding a site entirely from their own reserves the benefits are not as strong. At the same time, the use of a Sales Guarantee should still be compelling as the developer would have the entire site costs at risk without a lender.
Yes, we pay generous introduction fees equivalent to 0.1% of the GDV of the proposed development. This usually means a broker receives the equivalent of 1.25% of our deposit amount. Please get in contact to discuss any introductions you would like to make.
Yes, the LDS Sales Guarantee doesn’t interfere with Help-to-Buy which we encourage all our developer partners to sign up for.
Yes. As we have been active in the market for so long, we have developed an enviable network of trusted contacts. We regularly work with our developer partners to assist them in sourcing opportunities where we then provide a Sales Guarantee.
We are often compared to an insurance policy as we protect against risk, although our process is much simpler to use. If a developer has unsold units at any point in the process, they simply call upon LDS to complete which is legally binding under the guarantee.
We currently work with ICW, NHBC and Checkmate.
Proposal
An interested party – typically a developer, lender or finance broker – will generate an instant sales guarantee through our online engine. This proposal will detail the sales guarantee as well as demonstrating expected improvements in returns and reductions in equity input.
Liaise
LDS will liaise with the broker and/or developer completing all due diligence prior to issuing Heads of Terms and instructing lawyers.
Exchange
LDS will exchange contracts pre-construction guaranteeing to acquire all units on a site at a set price. We will pay over 10% of the contract price as a deposit which can be released to the developer or their lenders for their use.
Construction
The developer will commence construction and open market sales. For each unit sold on the open market LDS will take a small fee for providing the sales guarantee.
Completion
If there are unsold units at the end of the development cycle, or at any point in the process, the developer or lender can call upon LDS to complete.
Speculative vs guaranteed?
See the difference…
| Speculative | Guaranteed | |||
|---|---|---|---|---|
| GDV | £10,000,000 | £10,000,000 | ||
| Total Cost | £7,700,000 | £7,700,000 | ||
| Lender Debt | £6,500,000 | £6,500,000 | ||
| Lender Loan to GDV | 65% | |||
| LDS Deposit Release | £0 | £800,000 | ||
| Total Funding | £6,500,000 | £7,300,000 | ||
| Total Funding to GDV | 65% | 73% | ||
| Total Funding to Cost | 84% | 95% | ||
| Housebuilder Cash Contribution | £1,200,000 | £400,000 |
Working with
LDS on a project – lender
-
Origination
Deal introduced via completion of an online Sales Guarantee.
-
Underwriting
Reciprocal information sharing to ensure robust decision making.
-
Transacting
LDS can contract Sales Guarantees at pace and will not hold up lender debt contracting.
-
Management and monitoring
LDS will remain close to the construction progress and share insights with lenders.
-
Reducing risk
Guaranteed sales reduce credit risk. LDS deposit is unsecured and lenders first legal charge is unfettered and unrestricted.
-
Sales period
LDS will support lender facility extensions where required.
-
Open market sales
Upon each sale, lender retains net proceeds, save for LDS 11.49% of underwritten GDV (8% deposit return and 3.49% fee).
-
LDS backstop sales
Should LDS be called upon to purchase any unsold homes, lender receives 72% of underwritten GDV.
What our
clients say
“LDS Sales Guarantees enhance the return on equity for a developer as well as the number of projects they can undertake on currently. “The ability for interested parties to produce online proposals are second to none; combined with their inhouse…
“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.”
“LDS Sales Guarantees are essential in de-risking projects for lenders. The team’s knowledge and understanding of the market makes the process simple and straight forward from beginning to end. I would certainly use LDS again and can highly recommend them.”
“Mark and the LDS team not only provided an extremely good product that allowed a complicated and difficult transaction to complete but were also flexible in adapting their approach to accommodate a number of what seemed insurmountable last-minute hurdles. “The…
“The LDS Sales Guarantee is a unique source of additional funds for development finance. We are currently nearing completion with several clients using Sales Guarantees with notable lenders.”
Your questions answered
Managing Director, Ben Jenkinson answers some frequently asked questions about the LDS Sales Guarantee and how it benefits housebuilders, lenders, and brokers alike.
More frequently asked questions are answered here.
If you have a question that isn’t answered, 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.
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.
Reduce deal risk, increase deals done.
- Guaranteed exit removes sales risk in all market conditions.
- Increase lending to new and existing borrowers.
- Maximise the opportunity by creating a joint product.
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.
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.
Under 2 minutes. Click here to start.
The sooner we become involved the more benefit we can deliver. You do not need to own the site for us to provide you with a Sales Guarantee and financial projections. It is common for developers, lenders and brokers to involve LDS as part of their initial review process which is often before a site is acquired. A Sales Guarantee and its associated benefits can be the difference when reviewing sites for purchase or financing.
Our preferred criteria is:
- Houses and apartments (located outside of City Centres), across England and Wales
- 5-60 units per scheme or phase, with GDV levels of £1,500,000 – £35,000,000
- We can only guarantee open market sales and not affordable units, although we will require the details
If your site falls outside of these parameters, we may still be able to assist. Please contact us at info@LDSyoursite.com and we will review.
We do not take a charge over the site as it can interfere with lenders’ security. Our contract is registered, as is standard for any potential purchaser.
We can allow our 10% cash deposit to be released at exchange, which has a transformative effect on viability. In addition, we work with a number of lenders and brokers, who are well versed in the benefits of LDS, so can make the introduction should you require.
In the first instance, when using our online Sales Guarantee engine, we will take the developer’s anticipated values as the start point. If the site is looking to progress, we will complete our own due diligence to confirm the values as well as considering any professional valuation carried out for lenders. There is only one property market therefore the figures we derive are generally in line with the developer projections.
Our Sales Guarantee is for the site. So, in the unfortunate event of a default, the lender would be able to maintain the benefit of the Sales Guarantee which should expedite their exit in default.
We understand that post-PC is often the best time to sell and wanted to ensure developers retained the benefit of this. The run-off period gives the developer a generous period post-PC to dispose of any remaining units. At anytime within this period the developer can call upon LDS to complete on unsold units and exit the site.
Simply serve us a completion notice, exactly the same as any other sale.
LDS is part of Landmark Group, which is into its third decade of investing under our founder and CEO. The Group and CEO place an immeasurable amount of value in our well-earned reputation as reliable and straightforward investor partners. Our core portfolio consists of over 25,000+ properties approaching £200m in value. We have substantial financial resources and always ensure all participants are comfortable before entering into any transaction.
We would look to retain as long-term investments on a rental model basis. Our wider Landmark Group owns a large and constantly growing investment portfolio so is always ready, willing and able to acquire further stock.
We work with a vast number of lenders and we’re adding more all the time. Please contact us for details of our panel lenders and exclusive deals. Also, if you would like to discuss joining our lender panel or creating a bespoke product with a guaranteed exit then please contact Ben Jenkinson, Managing Director at LDS at ben.jenkinson@LDSyoursite.com.
LDS are the only provider of Sales Guarantees in the market and have invested many years and devoted significant funds to bring forward the concept. There is no comparable offering and the use of Sales Guarantees is transforming how developers and lenders approach new sites.
We have conducted extensive research to interrogate the pros and cons, working with developers, lenders and a host of professional advisors. In rare instances where a developer is not using debt and is funding a site entirely from their own reserves the benefits are not as strong. At the same time, the use of a Sales Guarantee should still be compelling as the developer would have the entire site costs at risk without a lender.
Yes, we pay generous introduction fees equivalent to 0.1% of the GDV of the proposed development. This usually means a broker receives the equivalent of 1.25% of our deposit amount. Please get in contact to discuss any introductions you would like to make.
Yes, the LDS Sales Guarantee doesn’t interfere with Help-to-Buy which we encourage all our developer partners to sign up for.
Yes. As we have been active in the market for so long, we have developed an enviable network of trusted contacts. We regularly work with our developer partners to assist them in sourcing opportunities where we then provide a Sales Guarantee.
We are often compared to an insurance policy as we protect against risk, although our process is much simpler to use. If a developer has unsold units at any point in the process, they simply call upon LDS to complete which is legally binding under the guarantee.
We currently work with ICW, NHBC and Checkmate.
Proposal
An interested party – typically a developer, lender or finance broker – will generate an instant sales guarantee through our online engine. This proposal will detail the sales guarantee as well as demonstrating expected improvements in returns and reductions in equity input.
Liaise
LDS will liaise with the broker and/or developer completing all due diligence prior to issuing Heads of Terms and instructing lawyers.
Exchange
LDS will exchange contracts pre-construction guaranteeing to acquire all units on a site at a set price. We will pay over 10% of the contract price as a deposit which can be released to the developer or their lenders for their use.
Construction
The developer will commence construction and open market sales. For each unit sold on the open market LDS will take a small fee for providing the sales guarantee.
Completion
If there are unsold units at the end of the development cycle, or at any point in the process, the developer or lender can call upon LDS to complete.
Speculative vs guaranteed?
See the difference…
| Speculative | Guaranteed | |||
|---|---|---|---|---|
| GDV | £10,000,000 | £10,000,000 | ||
| Total Cost | £7,700,000 | £7,700,000 | ||
| Lender Debt | £6,500,000 | £6,500,000 | ||
| Lender Loan to GDV | 65% | |||
| LDS Deposit Release | £0 | £800,000 | ||
| Total Funding | £6,500,000 | £7,300,000 | ||
| Total Funding to GDV | 65% | 73% | ||
| Total Funding to Cost | 84% | 95% | ||
| Housebuilder Cash Contribution | £1,200,000 | £400,000 | ||
| Broker Fees | £65,000 | £65,000 | ||
| Additional Broker Fees | £0 | £10,000 |
- £10,000 increase in deal fees.
Working with
LDS on a project – brokers
-
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, deposit release and LDS broker fees paid
Upon exchange, LDS will contract to purchase any complete and unsold homes on the site and release a 10% deposit into development cashflow with LDS fees paid to the broker.
-
Construction and sales
Once built, in usual course, homes will be sold to the open market and, upon each sale, LDS will recover its deposit and take a small fee. However, should the housebuilder require, LDS will complete the purchase of any unsold homes.
What our
clients say
“LDS Sales Guarantees enhance the return on equity for a developer as well as the number of projects they can undertake on currently. “The ability for interested parties to produce online proposals are second to none; combined with their inhouse…
“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.”
“LDS Sales Guarantees are essential in de-risking projects for lenders. The team’s knowledge and understanding of the market makes the process simple and straight forward from beginning to end. I would certainly use LDS again and can highly recommend them.”
“Mark and the LDS team not only provided an extremely good product that allowed a complicated and difficult transaction to complete but were also flexible in adapting their approach to accommodate a number of what seemed insurmountable last-minute hurdles. “The…
“The LDS Sales Guarantee is a unique source of additional funds for development finance. We are currently nearing completion with several clients using Sales Guarantees with notable lenders.”
Your questions answered
Managing Director, Ben Jenkinson answers some frequently asked questions about the LDS Sales Guarantee and how it benefits housebuilders, lenders, and brokers alike.
More frequently asked questions are answered here.
If you have a question that isn’t answered, 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.
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.
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.
Reduce deal risk, increase deals done.
- Guaranteed exit removes sales risk in all market conditions.
- Increase lending to new and existing borrowers.
- Maximise the opportunity by creating a joint product.
Under 2 minutes. Click here to start.
The sooner we become involved the more benefit we can deliver. You do not need to own the site for us to provide you with a Sales Guarantee and financial projections. It is common for developers, lenders and brokers to involve LDS as part of their initial review process which is often before a site is acquired. A Sales Guarantee and its associated benefits can be the difference when reviewing sites for purchase or financing.
Our preferred criteria is:
- Houses and apartments (located outside of City Centres), across England and Wales
- 5-60 units per scheme or phase, with GDV levels of £1,500,000 – £35,000,000
- We can only guarantee open market sales and not affordable units, although we will require the details
If your site falls outside of these parameters, we may still be able to assist. Please contact us at info@LDSyoursite.com and we will review.
We do not take a charge over the site as it can interfere with lenders’ security. Our contract is registered, as is standard for any potential purchaser.
We can allow our 10% cash deposit to be released at exchange, which has a transformative effect on viability. In addition, we work with a number of lenders and brokers, who are well versed in the benefits of LDS, so can make the introduction should you require.
The Sales Guarantee is simple, and each unit will have one of two outcomes. If a unit is sold on the open market LDS take a small fee at completion for providing the guarantee. If LDS acquire then there is no cost for this service. All other costs will be borne by each party.
In the first instance, when using our online Sales Guarantee engine, we will take the developer’s anticipated values as the start point. If the site is looking to progress, we will complete our own due diligence to confirm the values as well as considering any professional valuation carried out for lenders. There is only one property market therefore the figures we derive are generally in line with the developer projections.
Our Sales Guarantee is for the site. So, in the unfortunate event of a default, the lender would be able to maintain the benefit of the Sales Guarantee which should expedite their exit in default.
We understand that post-PC is often the best time to sell and wanted to ensure developers retained the benefit of this. The run-off period gives the developer a generous period post-PC to dispose of any remaining units. At anytime within this period the developer can call upon LDS to complete on unsold units and exit the site.
Simply serve us a completion notice, exactly the same as any other sale.
LDS is part of Landmark Group, which is into its third decade of investing under our founder and CEO. The Group and CEO place an immeasurable amount of value in our well-earned reputation as reliable and straightforward investor partners. Our core portfolio consists of over 25,000+ properties approaching £200m in value. We have substantial financial resources and always ensure all participants are comfortable before entering into any transaction.
We would look to retain as long-term investments on a rental model basis. Our wider Landmark Group owns a large and constantly growing investment portfolio so is always ready, willing and able to acquire further stock.
We work with a vast number of lenders and we’re adding more all the time. Please contact us for details of our panel lenders and exclusive deals. Also, if you would like to discuss joining our lender panel or creating a bespoke product with a guaranteed exit then please contact Ben Jenkinson, Managing Director at LDS at ben.jenkinson@LDSyoursite.com.
LDS are the only provider of Sales Guarantees in the market and have invested many years and devoted significant funds to bring forward the concept. There is no comparable offering and the use of Sales Guarantees is transforming how developers and lenders approach new sites.
We have conducted extensive research to interrogate the pros and cons, working with developers, lenders and a host of professional advisors. In rare instances where a developer is not using debt and is funding a site entirely from their own reserves the benefits are not as strong. At the same time, the use of a Sales Guarantee should still be compelling as the developer would have the entire site costs at risk without a lender.
Yes, we pay generous introduction fees equivalent to 0.1% of the GDV of the proposed development. This usually means a broker receives the equivalent of 1.25% of our deposit amount. Please get in contact to discuss any introductions you would like to make.
Yes. As we have been active in the market for so long, we have developed an enviable network of trusted contacts. We regularly work with our developer partners to assist them in sourcing opportunities where we then provide a Sales Guarantee.
We are often compared to an insurance policy as we protect against risk, although our process is much simpler to use. If a developer has unsold units at any point in the process, they simply call upon LDS to complete which is legally binding under the guarantee.
We currently work with ICW, NHBC and Checkmate.
Proposal
An interested party – typically a developer, lender or finance broker – will generate an instant sales guarantee through our online engine. This proposal will detail the sales guarantee as well as demonstrating expected improvements in returns and reductions in equity input.
Liaise
LDS will liaise with the broker and/or developer completing all due diligence prior to issuing Heads of Terms and instructing lawyers.
Exchange
LDS will exchange contracts pre-construction guaranteeing to acquire all units on a site at a set price. We will pay over 10% of the contract price as a deposit which can be released to the developer or their lenders for their use.
Construction
The developer will commence construction and open market sales. For each unit sold on the open market LDS will take a small fee for providing the sales guarantee.
Completion
If there are unsold units at the end of the development cycle, or at any point in the process, the developer or lender can call upon LDS to complete.
