OVERVIEW

Short-term loan facilities secured against property or land in England or Wales which has planning permission and is to be developed. For these development loan facilities, funds are released in stage payments according to Interim Monitoring Survey reports.

Pre-plan loan facilities are short-term facilities secured against sites in England or Wales where planning has not been granted but lending is provided against the ‘hope value’ of the site obtaining planning.  

These are unregulated products and the security property cannot be occupied or have ever been occupied by the borrower or a family member if the loan is taken in a personal capacity.

 
 

KEY FACILITY TERMS / DEVELOPMENT

 

 

Max loan size
£5,000,000
Min loan size
£200,000
Max loan to GDV
65% (Gross)
Max loan to cost
85% (Gross)
Valuation & IMS fee
Market rate

Loan term*
1 to 15 months
Arrangement fee**
2%
Early redemption fee
None
Exit fee
None
Legal fees
Market rate

 

KEY FACILITY TERMS /  PRE-PLANNING

 

 

Max loan size
£1,000,000
Min loan size
£100,000
Max loan to value
85% (Gross)
Max loan to hope value
65% (Gross)
Valuation & IMS fee
Market rate

Loan term*
1 to 15 months
Arrangement fee**
2%
Early redemption fee
None
Exit fee
Varies
Legal fees
Market rate

 

* 3 months’ minimum interest applicable on any facility redeemed within 3 months
** This is Pivot’s standard Arrangement Fee, which is flexible and can be discussed with the Origination Team

 
 

INDICATIVE RATES

 

 

DEVELOPMENT

    LT-Gross Development Value | Loan-to-Total Cost | Monthly interest
    <50% | <55% | From 0.99%
    <60% | <75% | From 1.05%
    <65% | <85% | From 1.09%

    PRE-PLANNING

      LT-Gross Development Value | Loan-to-Total Cost | Monthly interest
      <75% | <55% | From 1.25%
      <85% | <65% | From 1.35%

       

      KEY CRITERIA

       

       

      Key criteria

      Terms from 3-15 months
      Ground up development considered
      Up to 100% of development costs funded
      Sites without planning considered
      No exit fees on development loans

       

      INFORMATION REQUIRED

       

       

      PRE-PLANNING

      DEVELOPMENT

      • Application form;
      • Development appraisal;
      • Developer track record;
      • Details of planning consents
      • Application form;
      • Development appraisal;
      • Developer track record;
      • Scheme drawings;
      • Pre-Application correspondence (if applicable)
       

      CASE STUDIES

       

       

      DEVELOPMENT

       

      64.06
      %LTV

      CASE STUDY 1:

      FIRST CHARGE LAND AND DEVELOPMENT LOAN IN NORTH WEST LONDOn


      LOAN AMOUNT: £2,600,000

       

      49.18
      %LTV

      CASE STUDY 2:

      SECOND CHARGE DEVELOPMENT LOAN IN SOUTH WEST LONDON



      LOAN AMOUNT: £1,940,000

       

      54.10
      %LTV

      CASE STUDY 3:

      FIRST CHARGE DEVELOPMENT LOAN TO CONVERT A COMMERCIAL UNIT INTO NINE HOUSES


      LOAN AMOUNT: £1,900,000

       

      PRE-PLANNING

       

      84.99
      %LTV

      CASE STUDY 1:

      FIRST CHARGE LOAN SECURED AGAINST THE HOPE VALUE OF A MIXED-USE SCHEME
       

      LOAN AMOUNT: £650,000

       

      71.56
      %LTV

      CASE STUDY 2:

      FIRST CHARGE LOAN TO REFINANCE AND SUPPORT A NEW PLANNING APPLICATION
       


      LOAN AMOUNT: £500,000

       

      72.35
      %LTV

      CASE STUDY 3:

      SECOND CHARGE LOAN TO PURCHASE A DERELICT SITE IN NORTH LONDON


      LOAN AMOUNT: £580,000