£3.3m Land Finance Loan Closed in 7 Days

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Our Leeds based client had come under pressure from their investors. They had hit a cash flow hole, which was preventing them from building infrastructure to open the remainder of their 100+ unit site.  Investors were demanding progress, but cash was required.

We were presented by our client with a piece of land owned outright, at an original purchase price of £2,000,000.  We were asked if an over lend in relation to the purchase price was possible, planning had been gained and would provide an uplift in market value, demonstrated by a recent valuation instructed by our client.

Having identified three lenders that could work on a deal of this nature, we set about delivering the best possible terms within a tight time frame. We used a new to market lender, and raised £3,300,000 net within 7 working days from acceptance of heads.  The speed of the transaction was further improved as the lender used an existing valuation previously instructed by our client.  

Our clients said, “It is rare to have a lender and adviser exceed expectations.  On this occasion we have been happy not only with the nature and speed of the facility, but Conduit’s ability to adapt along the way with our interests coming first”.

Delivering new to market lenders is a constant part of our work. Having carefully assessed our client’s problem and suggesting a viable route, we were able to deliver a solution they thought unavailable in the market.  

We have recently launched planning consent finance from £25,000 to £150,000, for developers looking for additional capital to maximise opportunities and realise value from existing sites.

To enquire about capital raise against land or any other opportunities please do not hesitate to contact us.

Sean Crombie
Manager
M: 07595 520 577
DD: 0131 564 0172
E: sean@conduitfinance.com

Residential Development Finance – Latest Funding Prices

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Having returned to the UK after working overseas, it is clear that the property development finance market is quickly evolving.  The widespread under supply of housing is supported by huge demand from occupiers and investors alike. 

The various sub-sectors are all equally active, with student housing and private rented sector both at the forefront.  As such the lending market is evolving by the day, with more and more liquidity coming into the market.  Loan to costs are increasing, while pricing is compressing.

We have seen an increase in the number of lenders active in this sector.  Retail banks are providing rates as low as 2.50%, and stretched senior lenders can provide attractive loan to cost facilities at 90%. 

This week we have received several telephone calls from newly active lenders looking to deploy capital into the UK residential development finance market.  Most of these lenders are backed by private equity funds or family offices seeking income yield.

Lender type                    Loan to cost                Lenders fee             Rate pa              Exit fee
Family office                    100%                            2.00%                       7.00%                 0% of profit
High LTC 1                       90%                             1.00%                        10.00%                1.00% of debt
High LTC 3                      85%                              1.50%                        6.50%                 1.00% of GDV
Lean pricing 1                  65%                              1.00%                        3.00%                 0.00%
Lean pricing 2                 50%                             0.50%                        2.50%                 0.00%

2016 is likely to be an active year for lending in the UK, with 2015 having seen the highest levels of property finance since 2006.  We would anticipate that there will be an inevitable increase in the lenders risk appetite, and a reduction in the net cost of finance as lenders compete for transactions.

If you have any requirements we can directly quote for, then please do not hesitate to get in touch with me by email or phone below.

Sean Crombie

Sean@ConduitFinance.com
DDI: 0131 564 0274
M: 07595 520 577

Mark Reidy strengthens the team at Conduit Finance

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Mark Reidy has joined the Conduit Finance team as Business Development Director.  He brings 20 years of financial services experience to the Edinburgh head-quartered team.  Prior to taking up this role he worked closely with property developers for the Checkmate division of Lockton Companies LLP, one of the world’s largest privately owned insurance brokerages.  

Mark also spent time in the senior team of Buildstore, who specialise in self-build, custom build and residential development funding.  He is a client focussed and service driven business professional, who will help provide clients with bespoke solutions under the Conduit Finance and PropertyFinanceFinder.co.uk brands. 

Conduit was launched in 2007 by Managing Director Jamie Davidson.  Conduit Finance has continued to provide a point of difference in Corporate Finance for SME, Corporate and Property clients.  Factors that differentiate Conduit from the competition include their extensive panel of established and emerging lenders, the technical ability to structure deals, their solvent restructuring track record and expertise, and their dedication to increasing their clients' wealth. 

Mark joins the eight strong team and will be working closely with Managing Director Jamie Davidson to improve the client proposition, grow revenue and improve processes.  Jamie said “The appointment of Mark to the team is a real win for both the business and our clients.  Mark’s proven high levels of service, trust and transparency are well aligned with the values within our business.”

Price Update - Development Funding

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Development Funding - up to 90% Loan to Cost

Active lender has recently increased the maximum loan to cost on residential development deals to 90%

  • Loan Sizes of £500,000 to £10,000,000
  • Arrangement fee 1.75%
  • Rate 7.25% per annum
  • Exit fee 1.50%
  • Term from 6-24 months
  • All UK locations considered

Please contact Edward Page for all requirements up to £1m and Andy Lawson for deals above £1m.

Email Andy.Lawson@ConduitFinance.com orEdward@ConduitFinance.com or call 0131 564 0172.

Price Update - 24th August 2015 - RPD and Buy to Let

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100% Residential Development Finance without Personal Guarantees 

Private debt lender with considerable experience in the sector is looking to deploy capital in to projects with a 25% min net profit on cost. 

All purchase costs and build costs lent
Experienced developers only
Lender charges a flat interest rate and a % of profit equating to a total of 20%-30% of profit
Developer retains 70% + of the profit with any upside on projected GDV retained by developer
Scotland preferred but other locations considered
Loans from £1m to £10m
Loan term from 12 to 24 months 

Please contact Jamie Davidson on 0131 564 1970 or Jamie@ConduitFinance.com for further information.

Buy To Let Finance, 80% LTV with £995 fee

Lender providing highest available loan to value for buy to let purchase and refinance

5 year fixed rates available, security with interest rates forecast to rise
Available to experienced & first time landlords
No minimum income criteria
Rental income calculation based on interest rate of 4.99%

Please contact Stuart Cardozo on 0131 564 0172 or email Stuart@ConduitFinance.com for more information.