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Investment FinanceDevelopment FinanceMezzanine Finance
Investment Finance
The following is an indication only of the terms on which we will conduct business. Each proposal is subject to review and we can structure loans on a bespoke basis.
The following pre-requisites apply:-
Good quality, experienced investors/sponsors with a track record of similar schemes.
Location can be UK-wide but market demand must be evident and demonstrable.
Asset quality and location must be primary or good secondary.
| Type | Residential, Commercial or Part-Commercial. Single residential properties by exception only. HMO properties by exception only. |
| Occupation/ Tenants | General requirement is either good tenants and good lease lengths or strong diversity by tenant volume. Single let, or low tenant volume, must be characterised by tenant strength and average lease length exceeding the loan term. Strong letting/occupational history required. |
| Borrower | Individuals, Limited Companies, LLP/LP's etc. Overseas/off-shore borrowers can be considered. |
| Purpose | Acquisition or refinance. |
| Amount | £100,000 to £2,000,000, and higher. |
| Term | 6 months to 5 years |
| Repayment | Interest only or amortising. |
| Serviceability | Subject to review but typically minimum 150% interest cover. |
| Borrower Contribution | Cash, equity in security, or additional security over unencumbered property. |
| Loan to Value | Approximately 70% maximum. |
| Interest Rate | Approximately 6% per annum to 10% per annum. Fixed rates for the duration of the Term. |
| Arrangement Fee | Typically in a range of 1% to 2% of the loan amount. |
| Exit Fee | Nil (if at expiry) |
| Early Repayment | 5% in year 1, 2% in year 2 and nil thereafter. |
| Security | 1st Legal Charge/s Debenture Guarantees - from parent/holding company and/or directors and major shareholders. |
| Professional Reports | Valuation report from lender instructed valuers. Certificate of title from lender appointed solicitors. All professional fees will be for the account of the borrower. |
DEVELOPMENT FINANCE
The following is an indication only of the terms on which we will conduct business. Each proposal is subject to review and we can structure loans on a bespoke basis.
The following pre-requisites apply:-
Good quality, experienced investors/sponsors with a track record of similar schemes.
Location can be UK-wide but market demand must be evident and demonstrable.
Asset quality and location must be primary or good secondary.
The site must have an immediately implementable planning consent (no planning risk considered).
| Type | Residential, Commercial or Part-Commercial. Speculative residential development will be considered, subject to the above pre- requisites Commercial development (including student schemes and hotels) requires pre- lets, pre-sales or other means of contracted occupation |
| Borrower | Individuals, Limited Companies, LLP/LP's etc. Overseas/off-shore borrowers can be considered. |
| Purpose | New Build, Redevelopment or Refurbishment. |
| Amount | £100,000 to £2,000,000, and higher. |
| Term | 6 months to 2 years |
| Loan to Cost | Up to 90%, subject to review on a case by case basis. |
| Borrower Contribution | Cash, equity in security or additional security over unencumbered property. Borrower contribution to be committed ahead of the loan. |
| Loan to Value | Approximately 70% maximum on GDV. |
| Interest Rate | Approximately 8% per annum to 15% per annum. Fixed rates for the duration of the Term. Chargeable on the full loan amount. |
| Arrangement Fee | Typically in a range of 1% to 2% of the loan amount. |
| Exit Fee | Negotiable but usually 1% minimum of the loan amount. |
| Security | 1st Legal Charge/s Debenture Collateral Warranties and Assignment of Build Contract in some circumstances Guarantees - from parent/holding company and/or directors and major shareholders. |
| Professional Reports | Valuation report from lender instructed valuers. Certificate of title from lender appointed solicitors. Monitoring surveyor report (initial report and for each drawdown), in some circumstances, from a lender appointed QS/monitoring surveyor. All professional fees will be for the account of the borrower. |
MEZZANINE FINANCE
Requests will be considered for mezzanine finance for either development or investment purposes subject to generally the same criteria as for Investment Finance and Development Finance above, save for the following changes, and also the requirement for a deed of priority with the first charge holder which must include acceleration rights for Relendex.
MEZZANINE FINANCE
| Loan to Value | Indicative maximum is 75% |
| Interest Rate | From 15% per annum, but priced on a case-by-case basis. |
| Arrangement Fee | Arrangement Fee |