How do Sales Guarantees work?

  • An LDS Sales Guarantee is a contract, agreed pre-construction to acquire all units on a site, removing all pricing and demand risk.
  • On exchange, we pay a 10% deposit, which can be released unsecured at zero interest.
  • The guaranteed exit transforms the risk profile allowing lenders to offer much improved terms and leverage. Combined with the 10% cash from LDS deposit release, this completely transforms viability for developers, lenders and brokers.
  • Whilst the developer enjoys the Sales Guarantee benefits, they remain free to sell units on the open market and maximise their returns. For each unit sold, LDS take a small guarantee fee and will complete on any unsold units.

LDS Requirements

  • Housing schemes (with a small element of apartments considered)
  • All locations in England and Wales
  • 10 – 60 units per site or phase
  • Typical GDV range £3,000,000 – £35,000,000

LDS Sales Guarantee have a well-earned reputation for making transactions happen so if you have a scheme outside of our parameters they would still be happy to discuss.

Benefits to Members

The LDS Sales Guarantee maximises conversion and boosts fee income by:

  • Increasing leverage and reducing equity (which then leads to improved conversion)
  • Expediting lender credit and processing
  • Providing a much simpler alternative to mezz finance (as LDS take no security)

Benefits to developers

The LDS Sales Guarantee reduces cash input whilst increasing returns and output.

  • Upfront cash injection – 10% cash deposit released on exchange
  • This leads to a 77% reduction in upfront developer cash contribution
  • This enables developers to treble or quadruple output from the same capital base
  • Typically delivering 170% increase in returns on cash invested
  • We charge no arrangement fee, or interest and no security is required.

To see the impact of an LDS Sales Guarantee for yourself, visit LDS Sales Guarantee’s website. When contacting them, remembering to let them know you are an NACFB Member.

Visit LDS' Website