Release purchaser deposits whilst you complete your build
Off-plan deposits usually sit with a solicitor until completion. A deposit release bond lets you use them during construction, while every buyer's deposit stays protected by a bond issued by a specialist insurer.
- Typically around 4-6% a year, against 12-20% for mezzanine finance
- Deposits in your bank account within a week of the bond being in place
Why developers use them
Deposits your buyers have already paid are capital. A deposit release bond puts that capital to work on site instead of leaving it in a client account until the last plot completes.
Better cashflow
Fund build costs from deposits already taken, so less of the programme depends on new borrowing.
A fraction of the cost of mezzanine
Premiums typically work out at around 4-6% a year, against 12-20% for mezzanine finance. It sits alongside your senior debt, and we check early whether your facility agreement needs the lender's consent.
Buyers stay protected
The bond stands behind every released deposit. If the developer cannot complete, purchasers claim under the bond instead of chasing the developer.
Who it is for
Put deposits to work
Residential schemes of any size with off-plan sales, from a single high-value home upwards.
For developersClose the funding gap
Another route for clients who have sold off-plan and need more headroom than the senior facility gives.
For brokersKnow what protects the buyer
How release works under the sale contract, the purchaser certificate and what happens if a claim is made.
For solicitors and conveyancersHow it works
Send us the scheme
Location, units, sales position, lender and warranty provider.
Underwriting
We take the case to specialist insurers and handle their questions.
Terms and bond issued
You agree the terms, the security is signed and the bond is issued.
Deposits released
Deposits are released under the agreed terms and spent on the scheme.
When to set one up
At the start - the best time
Arranged before sales begin, the sale contracts can provide for release from day one, and the bond is there to protect every buyer as they exchange.
Part way through
If the build needs more cash than planned, a bond can still be arranged on a live scheme. We look at what the existing sale contracts allow and what would need to change.