product guide - lendinvest · inside you’ll find our full range of products including development...

Product GuideShort-term property finance

NACFB Short-term Lender of the Year, 2016

020 7118 [email protected]

intermediaries.lendinvest.com2

WelcomeWelcome to the LendInvest Product Guide. Inside you’ll find our full range of products including development loans and bridging loans. Additionally you’ll find a detailed explanation of our criteria.

Auction RefurbishmentBridging

Loans from £75k to £7.5 million

LTV up to 75%

Terms up to 12 months

Loans from £100k to £2 million

LTV up to 70%


Loans from £75k to £7.5 million

LTV up to 75%


Development Exit


LTV up to 70%


Pre-construction


LTV up to 70%


Development


Loan to GDV up to 65%


We don’t do

Regulated loans for owner occupied property

Consumer buy-to-let loans

Lend on property in Northern Ireland

We do

Unregulated loans

Lend on property in England, Wales and Scotland

OUR PRODUCTS



Our Business Development Managers are here to help, from enquiry to completion.

The team can provide assistance on all our products.

Gary Clark Business Development Manager

[email protected] +44 (0)755 712 2992 +44 (0)20 7118 1133

Magnus-Duke Dadzie Business Development Manager

[email protected] +44 (0)795 632 9292 +44 (0)20 7118 1133

Michael Minnie Business Development Manager

[email protected] +44 (0)790 085 6380 +44 (0)20 7118 1133

Justin Trowse Business Development Manager

[email protected] +44 (0)783 477 3977 +44 (0)20 3846 6825

Alex Kyriacou Business Development Manager [email protected]

+44 (0)772 583 8546 +44 (0)20 7118 1133

Meet your deal team

Peter McDermid Business Development Manager [email protected] +44 (0)7717 752 125

Damien Druce Business Development Manager [email protected] +44 (0)7901 774 666

NATIONAL

NORTHERN ENGLAND SCOTLAND

mailto:[email protected]





Team contact details: [email protected] / +44 (0)20 7118 1133





Get in touch

DEVELOPMENT ENQUIRIES

NEW BUSINESS ENQUIRIES

UNDERWRITING

CASES MOVING TO COMPLETION

LOAN SERVICING TEAM



The interest rate you receive on a bridging loan will depend on the nature of the security that the loan is secured against and the status of the borrower.

Our loans are split into three broad categories as you’ll see in the explanation below.

If you have a residential property that fits the requirements, Tier 1 offers our most competitive interest rates. The trade off for these lower rates is a stricter set of requirements, that both the property and borrower must meet. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria.

If you have a residential property that doesn’t match our Tier 1 criteria, it’s likely to be suitable for our Tier 2 product. Our Residential Bridging Tier 2 product allows for larger loans, more diverse property types and non-UK borrowers. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria.

If your security property is not purely residential, you should see our Commercial Bridging page. Here you’ll find loan details for semi-commercial and commercial properties, as well as land. See if your property fits and check our Borrower requirements page to confirm that the borrower(s) meets our lending criteria.

Bridging product overview

RESIDENTIAL BRIDGING TIER 2

RESIDENTIAL BRIDGING TIER 1

COMMERCIAL BRIDGING



Residential Bridging Tier 1Short-term loans for residential properties located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in the property.

DESCRIPTION

LTV Monthly interest

≤50% 0.64%

≤60% 0.69%

≤65% 0.74%

≤70% 0.84%

≤75% 0.94%

CRITERIA

Accepted Not accepted

Property ResidentialHMOs, holiday lets, non-standard construction properties, permitted development (change of use).

RefurbishmentProperty must be habitable.

Light refurbishment alllowed.

No heavy refurbishment. No structural, conversion or extension work (internal or external). No planning permission requirements.

Charge 1st charge 2nd charge

TenureFreehold, leasehold with 80+ years left on lease.

Leasehold less than 80 years.

Applicant UK residents and UK companies. Non-UK tax residents and non-UK companies.

Credit For credit profile criteria see the General requirements page.

Max loan size £3,000,000 Loan term From 1 to 12 months

Min loan size £75,000 Arrangement fee* 2%

Max loan to value 75% Early redemption fee None

Valuation fees Market rate Legal fees Market rate

*Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.



Short-term loans for residential properties located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in the property.





Accepted

Property Residential, HMOs, non-standard construction properties.

RefurbishmentLight refurbishment, heavy refurbishment and minor development: structural, conversion or extension work that requires planning permission or building regulation approval.

Charge 1st charge

Tenure Freehold and leasehold with 60+ years left on lease.


Residential Bridging Tier 2

DESCRIPTION

CRITERIA

LTV Monthly interest

≤40% 0.70% - 0.95%

≤50% 0.75% - 1.00%

≤60% 0.85% - 1.10%

≤65% 0.90% - 1.15%

≤70% 0.95% - 1.20%

≤75% 0.99% - 1.25%




Short-term property loans for semi-commercial, commercial and land, located in England, Wales and Scotland that meet the criteria below. Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in the property.

Monthly interest rates from

LTV Semi-commercial Commercial Land

≤40% 0.80% 1.00% 1.00%

≤50% 0.85% 1.05% 1.05%

≤60% 0.90% 1.10% 1.15%

≤65% 0.99% 1.15% 1.25%

≤70% 1.05% 1.20% 1.30%

≤75% 1.10% 1.25% 1.35%

Accepted

Property Semi-commercial, commercial, land.

RefurbishmentLight refurbishment, heavy refurbishment and minor development: structural, conversion or extension work that requires planning permission or building regulation approval.

Charge 1st charge

Tenure Freehold and leasehold with 60+ years left on lease.







Commercial Bridging

DESCRIPTION

CRITERIA




Exclusively for properties purchased at auction, Auction Finance offers a fast-tracked service to ensure certainty of funding within your timeframe. Suitable for investment properties throughout England, Scotland and Wales.





Tier 1 Tier 2 & Commercial

Property ResidentialResidential, HMOs, non-standard construction properties. Semi-commercial, commercial, land.

RefurbishmentProperty must be habitable.

Light refurbishment alllowed.

Light refurbishment, heavy refurbishment and minor development: structural, conversion or extension work that requires planning permission or building regulation approval.

Charge 1st charge 1st charge

TenureFreehold, leasehold with 80+ years left on lease.

Freehold and leasehold with 60+ years left on lease.

Applicant UK residents and UK companies. Non-UK tax residents and non-UK companies.


Monthly interest rates from

LTV Tier 1 Tier 2 Semi-commercial Commercial Land

≤40% 0.64% 0.70% - 0.95% 0.80% 1.00% 1.00%

≤50% 0.64% 0.75% - 1.00% 0.85% 1.05% 1.05%

≤60% 0.69% 0.85% - 1.10% 0.90% 1.10% 1.15%

≤65% 0.74% 0.90% - 1.15% 0.99% 1.15% 1.25%

≤70% 0.84% 0.95% - 1.20% 1.05% 1.20% 1.30%

≤75% 0.94% 0.99% - 1.25% 1.10% 1.25% 1.35%

50% off valuation fees for residential property purchases.AUCTION SPECIAL

Auction Finance

DESCRIPTION

CRITERIA



Refurbishment Finance is designed for property professionals looking to refurbish or improve existing properties. The loan is based on gross development value (GDV), with funds released in stages to fund the property purchase and refurbishment works.

Refurbishment Finance

Accepted

Applicant experience Demonstrate experience of similar projects.

Applicant UK residents and UK companies.

Property Residential

Charge 1st charge

Tenure Freehold, leasehold with more than 60 years remaining.

RefurbishmentHeavy refurbishment, including structural, conversion or extension work that may require planning permission or building regulation approval.


LTGDV Monthly interest rate

≤65% 0.92%

≤70% 1.10%

1% arrangement fee will be paid as a procuration fee to introducing brokers. LTGDV includes rolled up interest. In exceptional cases, we may require to undertake additional project monitoring, for which we reserve the right to charge an administration fee, agreed upfront. Once the max LTGDV of 70% is reached the borrower will be required to pay interest on a monthly basis.

ADDITIONAL INFORMATION

Max loan size £2,000,000 Loan term Up to 18 months

Min loan size £100,000 Arrangement fee 2%

Max LTGDV 70% Max LTV (day 1) 70%

Min refurb cost15% of day 1 MV

Not less than £25kMax refurb cost

50% of day 1 MV Up to £500k

Early redemption fee None Monitoring fee £1,250


Interest method Interest is rolled

DESCRIPTION

CRITERIA



Pre-construction finance is designed for experienced borrowers who are obtaining or enhancing planning permissions prior to building. The end planning consent will need to be residential. Available for projects located in England, Wales and Scotland.


Pre-construction

Max loan size £5,000,000 Loan term Up to 18 months



Valuation fees Market Legal fees Market

Max single unit £1,000,000 Interest method Retained

LTV Monthly interest rate

≤40% 1.00%

≤50% 1.05%

≤60% 1.15%

≤70% 1.25%

Accepted

Applicant experience Demonstrate experience of successful planning applications.

Planning Residential planning applications.

Charge 1st charge

Tenure Freehold and leasehold with more than 60 years remaining.


DESCRIPTION

CRITERIA



Unregulated loans for residential and semi-commercial projects, located in England, Wales and Scotland. The Borrower must have previous experience of similar projects.

*Loan to cost is calculated as the total of purchase cost plus development costs. We can therefore provide 100% of the development cost in most cases. **Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.


Min loan size £250,000 Arrangement fee** 2%

Max loan to value (land) 65% (including interest) Max single unit GDV £3,000,000

Max LTC* 90% Max per square ft GDV £1,500


Accepted

Applicant experience Demonstrate experience of similar projects.

Charge 1st charge

Tenure Freehold, leasehold with more than 60 years remaining.

Drawdown Based on works completed with monitoring surveyor sign off.


Annual interest rate 11% 9.5% 12%

Max loan to GDV 65% (including interest) 65% (including interest) 70% (including interest)

Exit fee None 2% 2%

Development

OPTION 2OPTION 1 OPTION 3

DESCRIPTION

CRITERIA



For development projects that have reached practical completion - replace higher cost development finance with flexible, low cost funding. Available for properties located in England, Wales and Scotland.

Accepted

Property Residential property, with new build warranty in place.

Charge 1st charge

Tenure Freehold and Leasehold with more than 80+ years remaining.

Applicant UK residents or UK Companies.


Monthly interest rate 0.7%

Repayments during loan termSell units and repay LendInvest with 80% or more of net proceeds

to receive a recalculated loan and reduced interest rate.




Valuation fees Market Legal fees Market

Max single unit £1,000,000 Interest method Rolled or serviced


Development Exit

DESCRIPTION

CRITERIA



We will carry out an independent valuation report in order calculate how much we can lend to your client.

The fee will be variable, depending on the value of the borrower’s property.

We will instruct solicitors to act for us in relation to your client’s mortgage. The cost of this work will typically be charged directly to the borrower by the solicitor.

The fee will be variable, depending on each borrower’s case and will be additional to any charges made by solicitors working on their behalf.

Residential

Property Value Not Exceeding Mortgage Valuation Including VAT

£300,000 £480

£400,000 £530

£500,000 £630

£600,000 £685

£700,000 £755

£800,000 £855

£900,000 £905

£1,000,000 £1,005

£1,500,000 £1,455

£2,000,000 £1,855

£3,000,000 £2,655

Commercial valuation fees will be arranged on a case by case basis.

Valuation & legal fees

VALUATION FEES

LEGAL FEES



Corporate

Company originUK limited companies. Non-UK possible. Please get in touch. For Tier 1 Bridging and Development Exit: UK companies only, including UK LLPs.

Max number of applicants 4 (directors/members).

Director’s nationalityUK/EEA acceptable. Non-EEA subject to underwriter approval.

For Tier 1 Bridging and Development Exit: UK only.

Security Debenture or other fixed and floating security required.

Personal guarantees

UK companies: Full personal gurantee required from all directors and shareholders holding more than 25% of shares in the company.

Non-UK companies: Full personal guarantees required from the principal or beneficiary of the company.

Borrower requirements

Individual

Minimum age 21

Maximum age 75 (at end of term).

Max number of applicants 4

Residential statusResident in the UK for 36 months or more. If not, please get in touch. For Tier 1 Bridging and Development Exit: Individuals must have resided in the UK for a minimum of 36 months and must currently be UK tax resident.

NationalityUK/EEA acceptable. Non-EEA subject to underwriter approval.

For Tier 1 Bridging and Development Exit: UK only.



General requirements

General requirements

Servicing: Bridging/Development

Underwriters must be satisfied that the borrower has the means to service the monthly interest (where interest is not retained). Evidence may be requested.

Exit strategy Applicants must be able to demonstrate a realistic exit strategy.

Solicitors

LendInvest will instruct its own solicitor to act on its behalf and you will be liable for their costs. The solicitor acting for you (to be acceptable to LendInvest) must have at least three Solicitors Regulatory Authority (SRA)approved managers. Please note licenced conveyancers are not acceptable.

ValuersLendInvest will instruct a valuer from its valuation panel to value the security being offered. You will be required to pay the valuers fee direct to the firm instructed when requested.

DepositOn all purchase cases the source of deposit must be disclosed. LendInvest may request that evidence of the deposit is produced.

Refurbishment

Details of any refurbishment and the related costs must be disclosed as part of your application. For major refurbishment/development you must supply details of your previous development experience to support your application.

For Tier 1 Bridging and Development Exit: No heavy refurbishment. No structural, conversion or extension work (internal or external). No planning permission requirements.

HMOs

Properties being refinanced that are operating as an HMO must have all appropriate licences in place at the time of application. Properties being purchased with an intention to use as an HMO should have licences in place as soon as practical after completion.

For Tier 1 Bridging and Development Exit: Not accepted.

Identity verification Passport or UK driving licence. Non UK residents, please contact us.

Address verificationUtility bill, bank statement or tax demand dated within the last three months.Non UK residents, please contact us.



Personal credit profile

Bankruptcy/IVANo bankruptcy/IVA in the last three years. If bankruptcy/IVA occurred in the last six years a full explanation is required.

For Tier 1 Bridging and Development Exit: No bankrupcy.

County Court Judgements (CCJ)

All CCJs must be satisfied and should not exceed £5,000. If more than one CCJ is present in the last six years the LTV is restricted to 60%. If more than three CCJs are present in the last six years the case will be declined. An explanation of any CCJ recorded is required in all cases.

For Tier 1 Bridging and Development Exit: If more than three CCJs are present in the last three years, case will be denied.

Mortgage/secured loansAll secured loans should be up-to-date at the time of application with no arrears greater than one monthly payment in the last 36 months.

Unsecured loans/revolving credit

Any arrears or defaults in the last 24 months are at the underwriter’s discretion to disregard.

Criminal convictionsNot permitted unless relating to motoring offences, or at the underwriter’s discretion.

Corporate Credit Profile

Bankruptcy or liquidation No bankruptcy or winding up petition in the last six years.

County Court Judgements (CCJ)

No CCJs unless by underwriter discretion.

Speak to our experts todayCall 020 7118 1133 Email [email protected] Visit intermediaries.lendinvest.com

product guide - lendinvest · inside you’ll find our full range of products including development...

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