INTERIM LENDING CRITERIA in Response to the Coronavirus Pandemic
Blackfinch Property remains very much open for new business. As part of maintaining the highest levels
of service for borrowers we have implemented alternative working arrangements. The situation remains
extremely fluid and is likely to change further, but below we set out the interim steps we are taking with
immediate effect on new lending proposals.
Due to the economic slowdown we are factoring in additional stress tests on both bridging and
development loans to account for possible sales and construction delays.
In effect, these interim criteria will reduce our loan to value ratios (LTVs) to allow for these additional
contingencies as follows:
BRIDGING LOANS
We are working with a preference for loans
with underlying income or income potential.
These could include completed developments,
or loans with a predetermined exit.
i) Where there is underlying income,
maximum LTV 65%
ii) Where the property is deemed to have
strong income potential,
maximum LTV 60%
iii) Otherwise,
maximum LTV 55%
The maximum LTVs above will be calculated
after having applied a contingency of a further
sales delay of six months (reduced to three
months if the exit is deemed secure).
DEVELOPMENT LOANS
i) If a fixed price design and build JCT contract
(joint contracts tribunal) is in place with a
reputable construction firm and the borrower
has a healthy level of net assets for a personal
guarantee or cost overruns,
maximum LTV 70%
ii) If the borrower is project managing sub-
contractors or has a weak net asset position,
maximum LTV 65%
The maximum LTVs above will be calculated
after having applied contingencies of:
i) A nine-month delay to achieving practical
completion on construction; and
ii) A further sales delay of six months
(reduced to three months if there is
deemed to be a secure exit).
BLACKFINCH PROPERTY IS THE TRADING NAME OF ORIGIN INVESTMENTS LTD (REG NO 05598455)
LYELL TRADING LTD (REG NO 08747022) AND HENSLOW TRADING LTD (REG NO 08703770)
Our expert team is here to support borrowers. Where sites are still open we are encouraging as
much progress as possible (as allowed by Government guidance) and are supporting developers
with advance payments or short term cashflow. We will continue to monitor the situation and our
borrowers’ positions and if construction sites are halted for extended periods of time we will consider
all options in how we can help. To get in touch with the team, use the contact details below.
As part of supporting you throughout this period, we now have a dedicated section on our website
covering coronavirus. This includes enterprise-wide FAQs along with focused updates.
INHERITANCE TAX RELIEF ENTERPRISE INVESTMENT
SCHEMES
AIM MODEL PORTFOLIOS
CONTACT US
01452 717989
www.blackfinch.com/property
BLACKFINCH PROPERTY IS THE TRADING NAME OF ORIGIN INVESTMENTS LTD (REG NO 05598455)
LYELL TRADING LTD (REG NO 08747022) AND HENSLOW TRADING LTD (REG NO 08703770)
INTERIM LENDING CRITERIA
These changes will be applied at our discretion and are based on a judgement of the overall risk.
They will temporarily take precedence but otherwise our normal criteria (attached) remains unchanged.
ONGOING SUPPORT