Nomad Property has secured a building warranty with deposit protection for luxury apartment development via J3 Advisory
London-based boutique property developer, Nomad Developments instructed J3 Advisory to secure a building warranty with deposit protection for their latest luxury apartment project in Surrey.
With a gross development value of £16m, the nine-unit apartment scheme represents a significant addition to Nomad’s growing pipeline.
The project has bolstered Nomad’s growing pipeline
Johnny Leadsom, director at J3 Advisory, sourced & placed the A-rated building warranty insurance on the full reinstatement value of the project. The policy ensures comprehensive coverage for any potential structural issues, offering peace of mind to both Nomad Developments and its future purchasers.
In addition to the warranty, Johnny was able to secure deposit protection for the project, allowing Nomad Developments to optimise cash flow. Although not essential, this approach allows developers to reduce the reliance on interest bearing loans, offering greater financial flexibility, while utilising and simultaneously protecting off-plan deposits.
“Securing deposit protection can be a game-changer for developers,” stated Leadsom. “Without it, developers often have to resort to uncomfortable levels of leverage, at high interest rates to cover project costs. Moreover, there’s considerable noise in the market about deposit protection, and our primary concern there is often centered around the capacity that sits behind it and the claims process in the event it’s called upon. The A-rated solution provided to Nomad satisfies all of our noted considerations.’
Deposit protection offers financial protections in a turbulent construction economy
The combination of deposit protection in conjunction with building warranty sets a strong example for other developers navigating today’s competitive market.
Leadsom added, “With the spikes in construction costs, developers must find ways to optimise cash flow while maintaining high standards. Deposit protection assists with this and offers a financially secure and efficient solution.”
Jack Simpson, founder & CEO, Nomad Developments, added, ’When undertaking our latest project, we recognised the importance of adding an additional layer of projection for our off-plan purchasers. Johnny’s solution, underpinned by A-rated capacity, provided the peace of mind our buyers and their solicitors were looking for.
“We’re always looking to offer our clients a best in class experience and having an insurance backed facility that supports that mission is incredibly valuable to us.’
The post Nomad enhances project efficiency with A-rated Deposit Protection sourced by J3 Advisory appeared first on Planning, Building & Construction Today.
