UTB refinances £34m development in Cornwall
The project is being undertaken by Acorn Property Group and the loan will settle the original funding while £4m will be used to complete internal construction works.
The apartments are situated near Gyllyngvase Beach and range in price from £325,000 for a one-bedroom apartment to £1.6m for a three-bedroom duplex penthouse apartment.
The development is expected to be completed by January 2021.
Melanie Omirou, group managing director and funding director of Acorn Property Group, said: “We enjoy working with Jonathan and United Trust Bank and value the strong relationship we’ve established over the years.
“UTB understand property and our needs as borrowers and when we were looking to refinance the development, Jonathan was the first person I called.
“Despite the additional challenges and uncertainty presented by the Covid-19 restrictions, UTB came back to us with a quick decision and swiftly arranged to settle the existing finance and pay out what we needed to complete the scheme.”
Jonathan Nail, director – property development at United Trust Bank, added: “Having financed several of their successful developments over recent years we were very happy to step in when they decided to refinance The Liner and are delighted that UTB will be on board for the completion of this prestigious development.”
Self-employed borrowers an ‘untapped opportunity’ for commercial finance needs – Westley
Conversations you have today, could help build up a pipeline of work for when the market is less abundant in the future.
So, at Brightstar, we decided to look into, just how big an untapped opportunity there could be for brokers in commercial lending.
We undertook a study of a diverse group of just under 350 intermediaries, including different types of broker firms, IFAs, directly authorised brokers and appointed representatives, to find out how many spoke to their clients about commercial finance.
The research found that 44 per cent of brokers did take the opportunity to talk to their self-employed clients about borrowing requirements for their business, while the remaining majority admitted that they did not mention commercial finance.
Every broker has some clients who are self-employed and for every homebuyer or remortgagor who runs their own business there is potentially an unmet demand for commercial finance and the opportunity to help.
According to the SME Finance Monitor, at the end of Q2 this year, 16 per cent of businesses said they planned to apply for finance and 32 per cent said they expected to be applying for finance at some point in the future.
So, most brokers have an untapped opportunity to forge stronger relationships with their clients and grow their business.
Even if you don’t have experience of commercial lending, working with a specialist distributor can help you to access the expertise and products that you need to provide your client with an additional service and diversify your offering.
And, by helping your clients secure commercial finance, you could be helping their business to grow and their personal finances to become stronger, which could in turn increase their appetite for mortgage borrowing in the future.
The reality is that your clients probably have multiple funding requirements.
While you may not be an expert in all of those, applying this principle to other areas of lending can help you to provide a more holistic service, resulting in improved client retention and word of mouth referrals.
So, however busy you are now, there are plenty of reasons to strike up a conversation about commercial finance when discussing mortgage requirements for with self-employed clients.
It’s these conversations today that could help boost your pipeline next year.
Sirius Property Finance opens New Zealand office
Robert Collins (pictured), a co-founder of Sirius, will establish the bespoke brokerage and debt advisory service in Auckland in the new year.
“I cut my teeth in property finance down under and, while it is geographically distant, the legal and banking systems share many similarities with the UK,” said Collins.
“On top of this, both New Zealand and Australia have growing populations, increasing need for housing and a burgeoning demand for specialist and development finance.”
Rob Jupp, chief executive of The Brightstar Group, parent company of Sirius, said it was an “exciting step” for the brand.
He added: “We’ve identified a number of opportunities where an entrepreneurial debt advisory business can make a real difference in the New Zealand market, and the opening of our Auckland office in 2021 will be another significant milestone for The Brightstar Group.”
Roma cuts rates, raises LTVs and maximum loans
The standard rate for residential investment property bridging has been reduced to 0.65 per cent per month with no exit fee and a maximum LTV of 70 per cent. Loan terms are three to 12 months.
Refurbishment rates have also been cut to start at 0.85 per cent with an LTV of up to 70 per cent.
Its development finance product now has rates available from one per cent per month for sites of up to six units, with a maximum term of 18 months.
The commercial bridging solution is now available with rates from 1.10 per cent and an increased LTV of 60 per cent.
Maximum loans sizes have been increased to £3m and exit fees have been removed from the majority of the range, the lender added.
Roma Finance commercial director Nick Jones (pictured) said: “With increasing distribution and support from our funding lines to help us keep pace with the growing demand, now is the time to ensure to we have the right criteria and solutions to meet the appetite for growth within the business.
“Business levels have grown significantly and we are maintaining the upwards trajectory.
“We are continuing to expand the Roma Finance team and the new lower rates will further stimulate our business in a focused and strategic way and we will continue to deliver excellent service to our intermediary partners and customers.”
Paragon appoints relationship director
Murphy (pictured) joins from LendInvest where she spent five years working across investor relations and then portfolio and relationship management within the development finance team.
Before that she was with Goldman Sachs for two years working in prime brokerage sales.
Murphy will be based in the development finance team’s Gracechurch Street head office in London and will work with clients across England, Paragon said.
Murphy said: “I’m excited to be working in such a successful and professional team and it is fantastic to be representing the growing number of women furthering their careers in this sector.
“I’m also looking forward to utilising both my experience and the teams’ knowledge to help Paragon and our developer clients meet their growth plans.”
Paragon Bank development finance managing director Robert Orr said: “Bringing somebody in with Rebecca’s experience, particularly in client management, will really support the business in growing its loan book and supporting both new and existing clients.
“Despite the challenges coronavirus presented to the sector we have remained active and, looking forward, we are confident in the prospects for the market.”
He added that the demand for new housing looked like it would remain strong into the future.
Minimum space standards enforced on permitted development homes
The issue has been a high profile one as the government is keen for permitted developments to form a key plank of its strategy for delivering more new homes.
Earlier this year research conducted for the Ministry of Housing Communities and Local Government (MHCLG) found studio flats measuring just 16m2 in several permitted development (PD) schemes, while natural light was often far more limited.
When pressed on the matter prime minister Boris Johnson failed to fully commit to a minimum size for properties built through permitted developments, but the policy has now been adopted.
The measures mean that all new homes in England delivered through PDRs will in the future have to meet the Nationally Described Space Standard.
The space standard begins at 37m² of floorspace for a new one-bed flat with a shower room (39m² with a bathroom).
Minority of developers
Announcing the move, MHCLG said: “While homes delivered through PDRs have little difference in quality compared to homes following a planning application, a minority of developers have been delivering small homes without justification.
“The changes announced today will put an end to this.”
Housing secretary Robert Jenrick said: “Permitted development rights are helping to deliver new homes and making an important contribution to our economic recovery from the pandemic, supporting our high streets by encouraging the regeneration of disused buildings and boosting our housing industry to safeguard the jobs of builders, plumbers and electricians.
He added: “While most developers deliver good homes and do the right thing, I’m tackling the minority of developers abusing the system by announcing that new homes delivered will have to meet space standards.”
Funding 365 trims rate and removes exit fee on light development loans
The lender entered the development finance market early last month with a rate for its light product starting at 0.79 per cent per month, which has now been cut to 0.74 per cent per month with no exit fee.
The product is designed to enable property developers to carry out heavy refurbishments, extensions, building conversions and permitted development schemes, as well as finish and exit development projects.
Loans are available between £200,000 to £3m in size and for properties in England and Wales for up to 24 months.
The maximum loan to value (LTV) is 75 per cent on day one and clients can also borrow up to 100 per cent cost of works, up to a maximum loan to gross development value (LTGDV) of 70 per cent.
A two per cent arrangement fee applies plus legal and valuation or monitoring fees at market rate.
Funding 365 marketing director Laura Kendall (pictured) said: “We previously included an exit fee in our light development product as this is how the majority of development lenders price their loans.
“But as we’ve settled into the development market we’ve found that most of our brokers and borrowers appreciate their loans being priced in the same way that we price our bridging loans, with no exit fees.
“We also found that we were, in practice, writing some loans that were a little lower than our advertised interest rate, so we adjusted that too,” she added.
Registration to attend The British Specialist Lending Awards opens
The awards will take place online at 4pm on Wednesday 28 October to unveil those most deserving of recognition in the specialist lending industry this year.
More than 4,000 nominations were received for the awards and the full shortlists for the 21 categories can be seen one the Specialist Lending Solutions website.
With continued government and health authority advice to maintain social distancing means it is not possible to deliver the British Specialist Lending Awards in person in October.
The welfare and safety of all guests, sponsors, suppliers and colleagues is the top priority and AE3Media and the Specialist Lending Solutions team therefore feels a virtual event is the most appropriate course of action in the current climate.
The online event will continue to showcase the glamour, glitz and the glory of the British Specialist Lending Awards and everyone is invited to join in the celebrations, all from the comfort of your own home.
The event will be streamed live with entertainment from musical comedy duo Flo & Joan, interactivity through a social media wall & chat function and lots more.
For more information visit: https://www.mortgagesolutions.co.uk/events/british-specialist-lending-awards/?pfat=3cf6444efd8041e882f39f3e556806da
Paragon provides £2m to first-time buyer development
The funding enabled the purchase of the site through a land loan and will subsequently fund the development of Aviary Court, a conversion and extension scheme of existing units into 10 residential homes.
These units will be privately gated with nearby off-street parking.
The site currently comprises of two vacant office buildings that will be extended and converted.
It is the second London Property Ventures’ scheme that Paragon has supported and is due to be completed mid-2021.
Matthew Jordan, CEO of investment at London Property Ventures, said: “There is a growing demand for property in areas that offer green spaces and access to the countryside and Epsom is a great location that offers these benefits, while still being close to London.
“We’re confident these homes will be popular with first-time buyers.”
Andrew Fairley, senior relationship director at Paragon, added: “It is great to be able to support with funding for this scheme as it aims to bring more much needed housing for first-time buyers in an area within easy reach to London.
“Over the past few months, it has been our priority to support both new-to-bank and existing clients, so we are pleased that we have been able to continue our relationship with London Property Ventures through assisting with the development of Aviary Court.”
Roma Finance launches development and commercial products
The development finance product offers loans from £100,000 to £750,000 at a loan to gross development value (LTGDV) of 60 per cent and both ground up and part-built sites will be considered.
The commercial bridging deal is offered on a wide range of property types and has rates from 1.25 per cent. This product has no exit fee.
Roma Finance has also removed the requirement to use other properties as additional security from its light, medium and heavy refurbishment range.
The products are available for properties bought at auction, conversions, refurbishments, homes in multiple occupancy (HMOs) and ground up development.
Nick Jones, commercial director at Roma Finance, said: “The growth in business at Roma Finance has been staggering and we have scaled up to ensure our service levels are maintained in line with demand. We are delighted to be able to offer these new products which have been created in response to customer and intermediary feedback.
“With strong and sustainable funding lines in place to help us keep pace with the growing demand for our products, now is the right time to launch these new products and widen the opportunity in the market.”