£3.3m Land Finance Loan Closed in 7 Days

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

Online Property Finance Brokerage Delivers

When you want to move fast you need options. By using online property finance brokerage www.PropertyFinanceFinder.co.uk our client secured a market beating facility at 0.85% per month, and it was done quickly. Time pressure was a factor with the change in tax laws due on the 1st of April.  

By controlling the process the borrower was able to personally select the most suitable lender for his needs based on pricing, loan to value and geography. He selected a flexible lender who was new to market, which helped him secure the loan without the need for lengthy application forms or multiple layers of lenders underwriting. 

The lender had been recently added on to the platform so the borrower benefited from a new to market lender, despite the funder having limited profile at the time. Providing borrowers with access to best in market pricing is something we do every day. Our research team are constantly speaking to new and established lenders to understand how they can offer our property developer and landlord clients the best possible deal every time they need to borrow. 

Having delivered the desired loan quantum with a lenders fee of 1.00% and at an interest rate of 0.85% per month with no exit fee, our client was extremely happy.  

By ensuring the process moved along swiftly on both sides of the transaction, the deal was completed in 4 weeks. 

We now look forward to assisting this borrower with long term finance, as we work to launch the new property investment component of Property Finance Finder. 

To view which lenders could offer the best rate, or the highest loan to value please visit www.PropertyFinanceFinder.co.uk.

The Seven Day Bridge

Having been referred to us by a previous client, we were engaged by our client to raise funds against an unencumbered property within extremely tight time scales.  The money was required to complete a purchase on a premium London off-plan apartment, within the agreed purchase date.  Unfortunately our client was unable to unwind existing investments as quick as was hoped, and turned to us to find a viable and deliverable solution to plug this funding gap.

Taking into account the prime location and nature of our client’s other properties, we decided to use a new to market family office we had met a week earlier.  The requirement for funds was needed within 10 working days, and we knew this would be deliverable given the lenders unique structure and their ability to make decisions and to deliver quickly.  

Having raised funds across two unencumbered properties, our client was able to complete the purchase on time with no further cash required.

By constantly scoping the market for new lenders, we were able to quickly make a decision on the most viable route given this specific requirement.  The £1,000,000 fund raise was met within the client’s tight timescales using a previously unknown lender.  The greatly reduced timescales were deliverable due to the lenders tight company structure, taking only seven days from heads of terms to final drawdown.  

Sean Crombie commented that “The ability to constantly refresh which lenders we have access to allows us a unique perspective on what is deliverable.  We are always striving to be at the forefront of the property finance industry.”
    
Having delivered the funds required within the desired timescales, our client was extremely happy with not only the solution delivered, but our transparency from the very beginning of the process on what could be achieved, and the likely costs involved.  

As a company we pride ourselves on a no surprises ethos, which ensures clarity as well as deliverability.    

Should you have a time pressured requirement for funding, do not hesitate to get in touch with a member of the team.

Jamie Davidson | Loans over £10m and restructuring | Jamie@ConduitFinance.com

Andy Lawson | Loans over £1m | Andy.Lawson@ConduitFinance.com

Edward Page | Loans under £1m | Edward@ConduitFinance.com 

Sean Crombie | Business Development | Sean@ConduitFinance.com

Mark Reidy | Business Development | Mark@ConduitFinance.com

Residential Development Finance – Latest Funding Prices

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