Funding 4 Property

Business/Property Type Commercial Investment - offices - warehouses - retail - business parks - parades Residential Investment - bedsits - multiple occupancy - flats above shops - blocks of flats - DSS tenancies - property portfolios Development: - commercial - residential - conversion - refurbishment - new build Bridging: - commercial - residential - closed or open ended	Loan to Value % Up to a maximum of 90% dependant on quality of tenant Up to 80% Up to 75% of value/purchase price plus 75% of development costs Up to 100% funding can be considered with additional security Up to 70% of value or Up to 100% funding with additional security	Interest Rates From base rate + 1.5% Rates of below 1% over base can be considered for "blue chip" covenants. From base rate + 2% From base rate + 2.5% From base rate + 5% up to 2% per month	Loan Term Funding is specifically tailored to suit the deal. Up to 20 years can be considered. Term of loan structured to suit development periods 3 - 12 months
Comments Additional information required: Commercial Investment - background on borrower including asset & liability statement and accounts where relevant. - valuation. - details on tenant may be required. Residential Investment - background on borrower including asset & liability statement and accounts where relevant. - valuation - refinance - 6 months bank statements Development - client's background - c.v. / asset & liability statement. - development appraisal. - plans/copy planning permission. - valuation and quantity surveyors report in due course. Bridging - valuation.



1. RESIDENTIAL INVESTMENT PROPERTY - FINANCIAL RE-STRUCTURING The Question: Could we assist a client to re-structure a short term overdraft facility against a residential investment property onto a long term loan? The Proposal: Our client approached us to assist with the re-structuring of an overdraft facility secured on a residential investment property in Chelsea. There were certain complications which meant that the proposal did not fit any standard "Buy to Let" schemes. The property was owned by a Liberian registered company who operated out of Switzerland. In addition the property was let on a company let. In addition our client had agreed with the tenant a "ratchet arrangement" whereby the rent would increase over a 3 year period to a figure equivalent to the open market rent. In the meantime the rent was at a figure which was not only below market rent but insufficient to cover the cost of the borrowing on the property. As a result the company was "propping" up the rental income which was not an entirely satisfactory arrangement as they wanted the property to "stand alone." The Requirement: Our client required a loan facility of £400,000 to re-structure the short term debt onto a long term basis. The Solution: We negotiated with a lender who would lend to an off-shore company. We then structured a deal whereby the loan was "set up" on a low start scheme which meant that the interest payments were also on a "ratchet" in line with the rental income. In addition the loan was structured on to a long term mortgage basis. The Benefits: The benefits on this proposal are clear. Re-stucturing the loan onto a long term basis was the first benefit. However more important to our client was the fact that the property was now "stand alone" and the rental income serviced the cost of the loan.

2. COMMERCIAL INVESTMENT PROPERTY - BASE RATE + 1.75% The Question: Could we arrange finance to re-structure an existing loan on a commercial investment property whilst at the same time raising additional funding for a new project in which our client was involved? The Proposal: Our client owned a freehold commercial investment property in the Epsom area. The property consisted of a ground floor restaurant let on a 35 year lease to a quality tenant. The first and second floors were let to a local firm of accountants on a 10 year FRI lease. Our client wished to re-structure his existing borrowing onto a lower interest rate whilst at the same time raising further funds for a new project in which he was involved. The deal was complicated by the fact that the borrower was a non UK resident. The Requirement: Our client required a total facility of £300,000 secured by way of a first charge over the investment property. The Solution: Having carried out a valuation we negotiated with a lender who was prepared to assist with the clients requirements. The fact that our client was not resident in the UK was an issue we were able to overcome. In addition the lender in question was able to capital raise against the property to enable our client to proceed with his new business venture. The Benefits: One of the key benefits to the client was a reduction in his interest rate. The deal was negotiated at 1.75% above base rate. In addition because our client viewed this property as a long term investment structuring the deal onto a long term basis was ideal for his purposes.

3. RESIDENTIAL DEVELOPMENT - £800,000 - FIRST TIME DEVELOPER The Question: Could we assist a first time developer with a residential development in Middlesex of six flats and three houses? The Proposal: Our client approached us having been declined by other lenders. His intention was to purchase a run down commercial premises, which he was converting to flats whilst also building three mews houses to the rear of the property. He had signed a 6 month purchase option with the vendor which enabled our client to proceed with a full planning application prior to exchange of contracts. Funding was required to carry out the site acquisition and for the development of the property as indicated above. The Requirement: Our client required a total loan facility of £800,000 to carry out the acquisition and development of the site. The Solution: In order to proceed with this proposal we first of all had a valuation of the property carried out, in addition, and this was the key, we asked the valuer for a figure based on the property having the option in place and planning permission granted for the proposed scheme. This figure was much higher than the purchase price agreed in the option and meant that we were in effect able to negotiate 100% funding on the purchase price. The Benefits: Our client was a first time developer and as a result had experienced resistance from more traditional sources of finance. However we were able to structure a deal which made sense for a lender and meant that our client was able to embark on what will hopefully be the first of many successful development projects.

4. OFFICE DEVELOPMENT - SO FAR EVERY LENDER HAS SAID NO! The Question: Could we arrange funding of £790,000 to assist a client to develop a new office scheme in West London? The Proposal: At the very first meeting we had with our client he said "I am happy to discuss my requirements with you although I don't think you will be able to help!!" The reason being he had already been declined by a number of lenders and he had now almost accepted the inevitable. The background was that our client owned a site in West London with planning permission for an office development. However there was no pre-let or pre-sale and so the development was entirely speculative. The requirement was for 100% of the development costs together with additional funds required to cover "soft costs" and interest charges during the development period. The Requirement: Our client required a total facility of £790,000 to carry out his proposed development. The Solution: As we discussed our clients proposal in greater detail it became clear that certain aspects of the deal needed to be re-appraised before re-approaching our lending principals with a revised deal. In discussions with the client that is exactly what we did and following nearly 2 months of extensive negotiations one of our lending principals had a valuation and development appraisal carried out and agreed to assist. The Benefits: The benefits in this case are clear. No lender had been prepared to consider our clients project up until our initial discussions with him. Following our re-appraisal of the deal we were able to negotiate a deal with a lender who although having already been approached was able to reconsider the deal on the revised basis. Our client was delighted and went on to develop a very high quality scheme which has been much in demand.

5. OPEN ENDED BRIDGING IN 5 DAYS! The Question: Could we arrange funds for a client who was required to complete in 5 working days? The Proposal: A client came to our offices on a Wednesday morning explaining that along with a partner he had exchanged contracts on a development site in North London and was due to complete on the purchase the following Wednesday. However his partner, who had been injecting some of the funds into the purchase, had been unable to proceed as his funds were still "tied up" in a previous deal which had been delayed due to unforseen circumstances. The Requirement: As a result our client required funding of £160,000 to complete the purchase of this development site. The Solution: Having received instructions from the client our timetable was as follows:- Wednesday - application sent to bank and valuation instructed Thursday - valuation carried out. Friday - valuation received and loan application approved. Monday - offer issued, accepted by the client and solicitors instructed. Wednesday - completion occurred. The Benefits: This deal speaks for itself. Our client required prompt action as time was of the essence. Needless to say the client was very relieved having come to us a week earlier with what had seemed like a lost cause.