Real Estate

Despite the recent turmoil in the capital and property markets we still believe that property backed loans can secure competitive funding from a range of well known and newly active sources. We have successfully sourced funding for residential and commercial investment and development as well as strategic land in the last twelve months.

INVESTMENT: The financial covenants have tightened for all types of transactions across all property types. Clients seeking facilities are faced with a plethora of interest cover and debt service cover calculations with each lender often adopting calculations that they are unable to justify. In order to improve the level of interest cover banks are suppressing gearing to unmanageable levels. Interest cover is only a single element of a transaction with the wider challenge being to ensure that all components can be structured to match the lenders requirements as closely as possible.

We provide clients with access to lending for both residential property investment (RPI / Buy To Let) and commercial propety investment. In the past we have sourced funding for single asset, single tenant investments through to multi-tenant and multi-asset portfolios in locations across the UK. We have recently secured funding for non-recourse investment funds that were originally formed as tax efficient Enterprise Zone ("EZ") schemes or as Business Premises Renovation Allowance ("BPRA"). 

DEVELOPMENT: Many speculative projects can still be funded but the majority of developers who have a badly planned or poorly presented proposal will not secure funding as the quality of deals chasing debt and equity/mezzanine funding has improved. Investing time in a professionally drafted proposal with detailed and accurate financial projections will ensure your deal receives the attention it deserves. All sectors remain fundable with certain sectors such as Hotels and Retail faring better. Some funders have completely withdrawn from development finance regardless of the proposal so matching the right development with the right lender is imperative.

Funding packages that we have secured for clients recently have consisted of one moderately geared senior debt loan for office to residential conversion that carried no form of direct recourse to the borrower. Another Residential development finance facility was secured at 3.75% over base rate at 70% loan to cost.  

LAND: Agricultural or development land can still be funded at gearing up to 60%-70%. Agricultural funding still continues to attract low margins and comparitively high gearing from a range of lenders who are liquid and largely unaffected by the mainstream property markets problems.  Land for development can be funded with a recent package we delivered for a client being geared to 70% of the purchase price, with the land being consented for residential property use. 

Another recent completion saw us secure a land overdraft facility for over 100 acres of unconsented land on a 5 year interest only at a margin below 2% over cost of funds. We used a specific mechanism for this transaction so the margin is surprisingly low for this reason, please contact us for further details on how we structured this loan. 

We have access to a wide range of lenders and providers so if you have a purchase or refinance that you are considering in the next six to twelve months then we suggest you begin the process now.

In this space we provide clients with access to the following products: Commercial property term loans, Residential investment term loans, Buy To Let, International Mortgages, Overseas funding for Investment or Holiday Homes, Residential Development Finance, Commercial Development Finance, Land Overdrafts and Main Residence Mortgages for HNWI's.  

Please contact us for further information on how we can help you secure competitive products and pricing.