Light Development Loan

November 30, 2020

Light Development Loan: interest rate from 0.74% pcm

Key Product Criteria:

Loan Size: £200,000 to £3,000,000

Max. Gross LTV (day one): 75% (gross loan amount divided by the lower of purchase price and valuation. Higher LTVs are available with additional security on a first charge basis only.)

Max. Gross LTGDV: 70%

Loan Term: 3 to 24 months

Min. Developer Profit: 15% profit on cost for experienced borrowers (minimum of 3 previously completed development/refurbishment projects in the past 3 years.) 20% profit on cost for new borrowers.

Developer Experience: Limited experience considered.

Planning Permission/PDR consent: Beneficial.

Product Rates & Fees:

Interest Rate (per month): From 0.74%

Arrangement Fee: 2%

Procuration Fee: From 1.5%

Valuation and Monitoring Fees: At market rate, provided upon application and to be paid up front.

Legal Fees: At market rate, provided upon application. To be deducted from the loan amount. The borrower’s lawyer will be required to provide the lender’s lawyer with an upfront undertaking to pay any legal fees in full.

Exit Fees: None

Early Repayment Charge: None

Product Characteristics:

Residential and Commercial Properties in England & Wales Only

UK Residents and Limited Companies Only

Adverse Credit History Accepted

Permitted Uses:

PDR Schemes

Heavy Property Refurbishment & Extension

Property Conversions to Residential & HMO

Finish & Exit

Prohibited Uses: