DEVELOPMENT AND PRE-PLANNING

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.

 
 

OVERVIEW / 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

 
 

OVERVIEW / PRE-Planning


 

Max loan size
£1,000,000
Min loan size
£100,000
Max loan to GDV
85% (Gross)
Max loan to cost
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

 
 

development


INDICATIVE RATES

LT-Gross Development Value | Loan-to-Total Cost | Monthly interest
<40% | <55% | From 1.05%
<55% | <75% | From 1.10%
<65% | <85% | From 1.15%

 

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

Application form; Development appraisal; Developer track record; Details of planning consents


 

64.06
%LTV

CASE STUDY 1:
1st charge land and development loan in North West London

LOAN AMOUNT: £2,600,000

The borrower approached Pivot for a facility to fund the purchase of a church and community space, followed by funding on a draw down basis for the ground-up construction of a residential led mixed-use development scheme. The facility was exited through the sale of some of the residential units.

 

49.18
%LTV


CASE STUDY 2:
2nd charge development loan in South West London
LOAN AMOUNT: £1,940,000

The borrower was a high net worth client and the loan provided was secured against a site where planning had been granted for a high-value single luxury dwelling. Pivot went outside of standard credit policy and allowed the borrower to keep his low rate first charge facility as borrower had a strong credit profile.

 

54.10
%LTV


CASE STUDY 3:
1st charge development loan to convert a commercial unit into nine houses
LOAN AMOUNT: £1,900,000

The borrower approached Pivot to provide a facility to redevelop existing commercial premises into nine, four-bedroom houses in West London. Due to a leak in the underfloor heating system, there were delays and cost overruns, so Pivot additional funds to ensure the build was completed.

 
preplanning.jpg
 

PRE-PLANNING


INDICATIVE RATES

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

 

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

Application form; Development appraisal; Developer track record; Scheme drawings; Pre-Application correspondence (if applicable)


 

84.99
%LTV

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

LOAN AMOUNT: £650,000

The borrower was provided with a loan advanced against a proposed residential scheme in Kingston. Standard LTV parameters were exceeded against the existing use of the commercial asset and the hope value of the proposed scheme was considered and ratified through an external planning opinion.

 

71.56
%LTV


CASE STUDY 2:
1st charge loan to refinance and support a new planning application
LOAN AMOUNT: £500,000

Our borrower was provided with a loan to repay an existing first charge and support the planning application for a basement and second storey level extension to a property in West London. A planning opinion was sought which was positive.

 

72.35
%LTV


CASE STUDY 2:
2nd charge loan to purchase a derelict site in North London
LOAN AMOUNT: £580,000

The borrower asked Pivot to assess the likelihood of obtaining planning and as a result, a facility was provided to purchase a site on a prime North London road and advanced additional funds on the basis that planning would be achieved to convert the site into four flats.