OVERVIEW
We offer short-term loan facilities secured against residential properties and can also provide loans where there may be light or heavy refurbishment works required.
These loans are used where there is a residential property being provided as security and the purpose of the loan is to either acquire, release funds or refurbish the property. Typical examples include:
To purchase a residential property quickly when it may not be viable to arrange traditional high street finance (e.g. via auction).
To enhance the value of the property by conducting light refurbishment works (e.g. through the replacement of carpets and painting).
To enhance the value of the property by conducting heavier refurbishment works (e. adding new kitchens, bathrooms).
To refinance a completed development site to provide more time to sell.
We are geographically agnostic across England and Wales, and have an extensive panel of specialist valuers who can appraise properties in these regions. As these are unregulated products, 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 Criteria
sTANDARD PARAMETERS
NOTES
LOAN SIZE
£150,000 - £5,000,000
Loans smaller / larger considered by exception
LEVERAGE
Up to 70% (gross)
75% considered by exception
TERM
3 - 15 months
3 months minimum interest applicable on any facility redeemed within 3 months. Typical residential loans for investment purposes have a maximum term of 12 months, while refurbishment loans have a maximum term of 15 months
Fees
2% arrangement fee, valuation and legal fees, £295 administration fee
Valuation fees payable directly to valuation panel manager
location
Across England & Wales
Leverage may be adapted based on liquidity of specific location
property type
Unacceptable securities include steel framed properties; mobile homes and Grade I listed buildings
Acceptable securities include detached; semi-detached; terrace; bungalow; flat; maisonette; ex-local authority
TYPE OF WORKS
Light refurbishment product can be used when there are non structural, minor works (e.g. carpets and paint). The lend will be against current market value
Heavy refurbishment works cannot take more than 30 days. More extensive works will fall into the renovation
TENURE
Freehold; leasehold with 75+ years left on lease; commonhold; possessory title
Leasehold less than 75 years; freehold flats and maisonettes, and full flying freeholds not accepted
BORROWER PROFILE
Acceptable borrowers include: UK residents; UK companies; selected overseas companies with shareholders resident in UK
Overseas companies with non UK resident shareholders cannot be accepted