Before each loan is listed, Relendex carries out detailed checks and assessments.

Risk Rating

We evaluate the borrower, loan and security,
 and then assign a risk rating as a guide for
lenders.

See below the elements that comprise the Risk
Rating matrix.

 

 

 

 

Our extensive checks and investigations

Our due diligence process is extensive and carried out by a Lending Team consisting of former senior lending officers from Rothschild Banking Group and headed by Peter Johns our Head of Lending (Peter was former Head of Banking with Rothschild). For each loan the Lending Team report on:

Our Lending Team then produce a Risk Rating Guide derived from key criteria of which the two most important are Loan to Value (LTV) and Interest Cover Ratio.

We then “stress test” the projected cash flows from the property using different assumptions about void periods and re-letting terms. This risk assessment is then used to place each loan into one of four indicative risk bands – A+ to C – as a guide to lenders to assess risk and return profiles.

The report from our Lending Team together with a Professional Valuation and a detailed Loan Summary are available for viewing by registered lenders in the Virtual Data Room

Solicitors and Valuers

Solicitors and Valuers from the Relendex panel, selected from leading regional and national firms, are appointed to act on behalf of the group of lenders (who were successful at auction). The professional fees are paid by the borrower.

The solicitors will carry out full due diligence and provide standard documentation for signature based on key clauses from Loan Market Association (LMA) Loan and Security Documentation. The Valuation Report and Certificates of Title are addressed to the lender group. These reports and all other relevant documents are available for inspection at any time in our Virtual Data Room.

The Professional Valuation

The Professional Valuation is a detailed document and usually contains the following sections:

Certificate of Legal Title

The appointed solicitors will carry out full legal due diligence and provide a Certificate of Title on the asset security.

Due Diligence Documents are addressed directly to Lenders

The Professional Valuation and Certificate of Title are addressed directly to the lender group.

Virtual Data Room

Professional Valuations, Title Reports, Tenancy Schedules, development appraisals and other key documents are available for viewing to registered users in our Virtual Data Room. This affords lenders unprecedented levels of transparency, empowering them to make informed decisions based on comprehensive information and their own investment criteria.

Risk Rating Matrix

Our property lending team has created a Risk Rating Matrix-based on four major categories of risk as set out in the table below.

Find out more about risk management