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
£250,000
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 Criteria / Development \\ Pre-planning


Criteria

Accepted

Not Accepted


 

Property

Grade II listed buildings \\
Grade I listed buildings

Residential; land \\
Residential; commercial; land


Charge

1st Charge*

2nd charge; equitable charge*


Tenure

Leasehold less than 75 years*

Freehold; leasehold 75+ years*


Applicant

UK residents; UK companies; overseas
companies with shareholders resident
in UK*

Overseas companies with non-
UK resident shareholder*


Track Record

No experience of development or
the property sector*

Experience of similar projects.* 
Planning permission to be in place
(Development)


Always assessed on deal by deal basis*

Credit


* same terms in both development and pre-planning

 
 

KEY FACILITY TERMS /  PRE-PLANNING

 

 

Max loan size
£1,000,000
Min loan size
£250,000
Max loan to value
85% (Gross)
Max loan to hope value
65% (Gross)
Valuation & IMS fee
Market rate

Loan term*
1 to 18 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

LTV (existing use) | LTV (hope value) | Monthly interest
<75% | <55% | From 1.25%
<85% | <65% | From 1.35%

 

 

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

 

Pre-planning

 

64.86
%LTV

CASE STUDY 1:

FIRST CHARGE development loan in west sussex



LOAN AMOUNT: £757,000

 

84.99
%LTV

CASE STUDY 2:

1st charge loan secured against the hope value of a mixed-use scheme


LOAN AMOUNT: £650,000