Product Guide. Short-term property finance

Transcription

1 Product Guide Short-term property finance

2 Welcome Welcome to the LendInvest Product Guide. Inside you ll find our full range of products including development loans and bridging loans. Additionally you ll find a detailed explanation of our criteria. OUR PRODUCTS Bridging Development Development Exit Loans from 75k to 7.5 million Loans from 250k to 10 million Loans from 250k to 5 million LTV up to 75% Loan to GDV up to 65% LTV up to 70% Terms up to 12 months Terms up to 24 months Terms up to 12 months Often used for: Buying property at auction Short-term cash flow requirements Refurbishments Extensions Often used for: Property development Ground up builds Often used for: Developments that have reached practical completion Key Pages Bridging product overview - pg.4 Residential Tier 1 - pg.5 Residential Tier 2 - pg.6 Commercial - pg.7 Valuation & Legal Fees - pg.10 Criteria - pg.11 to 13 Key Pages Development - pg.8 Valuation & Legal Fees - pg.10 Criteria - pg.11 to 13 Key Pages Development Exit - pg.9 Valuation & Legal Fees - pg.10 Criteria - pg.11 to 13 2

3 What we do What we won t do Unregulated loans Lend on property in England, Wales and Scotland Bridging Finance Development Finance Regulated loans for owner occupied property Consumer buy-to-let loans Lend on property in Northern Ireland All property types considered MEET YOUR DEAL TEAM Our Business Development Managers are here to help, from enquiry to completion. The team can provide assistance on all our products. Gary Clark Business Development Manager gary@lendinvest.com +44 (0) (0) Magnus-Duke Dadzie Business Development Manager magnus@lendinvest.com +44 (0) (0) Michael Minnie Business Development Manager michael@lendinvest.com +44 (0) (0) Alex Kyriacou Business Development Manager alex.kyriacou@lendinvest.com +44 (0) (0) Justin Trowse Business Development Manager justin@lendinvest.com +44 (0) (0) Peter McDermid Business Development Manager peter.m@lendinvest.com +44 (0) (for Scotland) Damien Druce Business Development Manager damien@lendinvest.com +44 (0) (for North England) 3

4 Bridging product overview The interest rate you receive on a bridging loan will depend on the nature of the security that the loan is secured against and the status of the borrower. Our loans are split into three broad categories as you ll see in the explanation below. RESIDENTIAL BRIDGING TIER 1 If you have a residential property that fits the requirements, Tier 1 offers our most competitive interest rates. The trade off for these lower rates is a stricter set of requirements, that both the property and borrower must meet. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria. RESIDENTIAL BRIDGING TIER 2 If you have a residential property that doesn t match our Tier 1 criteria, it s likely to be suitable for our Tier 2 product. Our Residential Bridging Tier 2 product allows for larger loans, more diverse property types and non-uk borrowers. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria. COMMERCIAL BRIDGING If your security property is not purely residential, you should see our Commercial Bridging page. Here you ll find loan details for semi-commercial and commercial properties, as well as land. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria. 4

5 Residential Bridging Tier 1 Short-term loans for residential properties located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower s family cannot live or intend to live in the property. DESCRIPTION Max loan size 3,000,000 Loan term From 1 to 12 months Min loan size 75,000 Arrangement fee* 2% Max loan to value 75% Early redemption fee None Valuation fees Market rate Legal fees Market rate *Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply. LTV Monthly interest 50% 0.64% 60% 0.69% 65% 0.74% 70% 0.84% 75% 0.94% OUR CRITERIA Accepted Not accepted Property Refurbishment Residential Property must be habitable. Light refurbishment alllowed. HMOs, holiday lets, non-standard construction properties, permitted development (change of use). No heavy refurbishment. No structural, conversion or extension work (internal or external). No planning permission requirements. Charge 1st charge 2nd charge Tenure Freehold, leasehold with 80+ years left on lease. Leasehold less than 80 years. Applicant UK residents and UK companies. Non-UK tax residents and non-uk companies. Credit For credit profile criteria see the General requirements page. Outside of of our our criteria? Get See in Residential touch to discuss Bridging your Tier case. 2. 5

6 Residential Bridging Tier 2 Short-term loans for residential properties located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower s family cannot live or intend to live in the property. DESCRIPTION Max loan size 7,500,000 Loan term From 1 to 12 months Min loan size 75,000 Arrangement fee* 2% Max loan to value 75% Early redemption fee None Valuation fees Market rate Legal fees Market rate *Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply. LTV Monthly interest 40% 0.70% % 50% 0.75% % 60% 0.85% % 65% 0.90% % 70% 0.95% % 75% 0.99% % OUR CRITERIA Accepted Property Refurbishment Charge Tenure Credit Residential, HMOs, non-standard construction properties. Light refurbishment, heavy refurbishment and minor development: structural, conversion or extension work that requires planning permission or building regulation approval. 1st charge Freehold and leasehold with 60+ years left on lease. For credit profile criteria see the General requirements page. 6

7 Commercial Bridging Short-term property loans for semi-commercial, commercial and land, located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower s family cannot live or intend to live in the property. DESCRIPTION Max loan size 7,500,000 Loan term From 1 to 12 months Min loan size 75,000 Arrangement fee* 2% Max loan to value 75% Early redemption fee None Valuation fees Market rate Legal fees Market rate *Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply. LTV Monthly interest rates from Semi-commercial Commercial Land 40% 0.80% 1.00% 1.00% 50% 0.85% 1.05% 1.05% 60% 0.90% 1.10% 1.15% 65% 0.99% 1.15% 1.25% 70% 1.05% 1.20% 1.30% 75% 1.10% 1.25% 1.35% OUR CRITERIA Accepted Property Refurbishment Charge Tenure Credit Semi-commercial, commercial, land. Light refurbishment, heavy refurbishment and minor development: structural, conversion or extension work that requires planning permission or building regulation approval. 1st charge Freehold and leasehold with 60+ years left on lease. For credit profile criteria see the General requirements page. 7

8 Development Unregulated loans for residential and semi-commercial projects, located in England, Wales and Scotland. The Borrower must have previous experience of similar projects. DESCRIPTION Annual interest rate 11% Max loan size 10,000,000 Loan term From 1 to 24 months Min loan size 250,000 Arrangement fee** 2% Max loan to value (land) 65% (including interest) Exit fee None Max loan to GDV 65% (including interest) Max single unit GDV 3,000,000 Max LTC* 90% Max per square ft GDV 1,500 Valuation fees Market rate Legal fees Market rate *Loan to cost is calculated as the total of purchase cost plus development costs. We can therefore provide 100% of the development cost in most cases. **Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply. OUR CRITERIA Accepted Applicant experience Charge Tenure Drawdown Credit Demonstrate experience of similar projects. 1st charge Freehold, leasehold with more than 60 years remaining. Based on works completed with monitoring surveyor sign off. For credit profile criteria see the General requirements page. 8

9 Development Exit For development projects that have reached practical completion - replace higher cost development finance with flexible, low cost funding. Available for properties located in England, Wales and Scotland. DESCRIPTION Monthly interest rate 0.7% Repayments during loan term Sell units and repay LendInvest with 80% or more of net proceeds to receive a recalculated loan and reduced interest rate. Max loan size 5,000,000 Loan term From 3 to 12 months Min loan size 250,000 Arrangement fee* 2% Max loan to value 70% ERC None Valuation fees Market Legal fees Market Max single unit 1,000,000 Interest method Rolled or serviced *Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply. OUR CRITERIA Accepted Property Charge Tenure Applicant Credit Residential property, with new build warranty in place. 1st charge Freehold and Leasehold with more than 80+ years remaining. UK residents or UK Companies. For credit profile criteria see the General requirements page. 9

10 Valuation & Legal Fees Valuation Fees We will carry out an independent valuation report in order calculate how much we can lend to your client. The fee will be variable, depending on the value of the borrower s property. Commercial valuation fees by negotiation. Residential Property Value Not Exceeding Mortgage Valuation Including VAT 300, , , , , , , ,000,000 1,005 1,500,000 1,455 2,000,000 1,855 3,000,000 2,655 Legal Fees We will instruct solicitors to carry out work on your client s mortgage. The cost of this work will typically be charged directly to the borrower by the solicitor. The fee will be variable, depending on each borrower s case and will be additional to any charges made by solicitors working on their behalf. 10

11 Borrower requirements Individual Minimum age 21 Maximum age 75 (at end of term). Max number of applicants 4 Residential status Nationality Resident in the UK for 36 months or more. If not, please get in touch. For Tier 1 Bridging and Development Exit: Individuals must have resided in the UK for a minimum of 36 months and must currently be UK tax resident. UK/EEA acceptable. Non-EEA subject to underwriter approval. For Tier 1 Bridging and Development Exit: UK only. Corporate Company origin Max number of applicants Director s nationality Security UK limited companies. Non-UK possible. Please get in touch. For Tier 1 Bridging and Development Exit: UK companies only, including UK LLPs. 4 (directors/members). UK/EEA acceptable. Non-EEA subject to underwriter approval. For Tier 1 Bridging and Development Exit: UK only. Debenture or other fixed and floating security required. Personal guarantees UK companies: Full personal gurantee required from all directors and shareholders holding more than 25% of shares in the company. Non-UK companies: Full personal guarantees required from the principal or beneficiary of the company. 11

12 General requirements General requirements Servicing - Bridging/ Development Underwriters must be satisfied that the borrower has the means to service the monthly interest (where interest is not retained). Evidence may be requested. Exit strategy Applicants must be able to demonstrate a realistic exit strategy. Solicitors LendInvest will instruct its own solicitor to act on its behalf and you will be liable for their costs. The solicitor acting for you (to be acceptable to LendInvest) must have at least three Solicitors Regulatory Authority (SRA) approved managers. Please note licenced conveyancers are not acceptable. Valuers LendInvest will instruct a valuer from its valuation panel to value the security being offered. You will be required to pay the valuers fee direct to the firm instructed when requested. Deposit On all purchase cases the source of deposit must be disclosed. LendInvest may request that evidence of the deposit is produced. Refurbishment HMOs Details of any refurbishment and the related costs must be disclosed as part of your application. For major refurbishment/development you must supply details of your previous development experience to support your application. For Tier 1 Bridging and Development Exit: No heavy refurbishment. No structural, conversion or extension work (internal or external). No planning permission requirements. Properties being refinanced that are operating as an HMO must have all appropriate licences in place at the time of application. Properties being purchased with an intention to use as an HMO should have licences in place as soon as practical after completion. For Tier 1 Bridging and Development Exit: Not accepted. Identity verification Passport or UK driving licence. Non UK residents, please contact us. Address verification Utility bill, bank statement or tax demand dated within the last three months. Non UK residents, please contact us. 12

13 Personal credit profile Bankruptcy/IVA County Court Judgements (CCJ) No bankruptcy/iva in the last three years. If bankruptcy/iva occurred in the last six years a full explanation is required. For Tier 1 Bridging and Development Exit: No bankrupcy. All CCJs must be satisfied and should not exceed 5,000. If more than one CCJ is present in the last six years the LTV is restricted to 60%. If more than three CCJs are present in the last six years the case will be declined. An explanation of any CCJ recorded is required in all cases. For Tier 1 Bridging and Development Exit: If more than three CCJs are present in the last three years, case will be denied. Mortgage/secured loans All secured loans should be up-to-date at the time of application with no arrears greater than one monthly payment in the last 36 months. Unsecured loans/revolving credit Any arrears or defaults in the last 24 months are at the underwriter s discretion to disregard. Criminal convictions Not permitted unless relating to motoring offences, or at the underwriter s discretion. Corporate Credit Profile Bankruptcy or liquidation No bankruptcy or winding up petition in the last six years. County Court Judgements (CCJ) No CCJs unless by underwriter discretion. 13

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