We are a leading specialist bank and have a proven track record of financing residential developments.
We offer experience, flexibility, diligence and relationships.
Experience. We have a long history of involvement with residential development and so do our business development managers. Each manager has over 20 years’ property lending experience and they spend all their time speaking to developers and evaluating projects.
Flexibility. We tailor loans to the circumstances of each borrower and project. If something unforeseen emerges during a project we won’t turn it into a drama but react professionally and commercially.
Diligence. Development is an exacting business requiring considerable attention to detail at every step. We understand development and our due diligence adds value to the work done by our customers.
Relationships. We build relationships that last with our customers, based on open and knowledgeable communications and the experience of working together over several projects.
We will lend anywhere in England and in some parts of Wales, provided a reasonably active market exists for the finished dwellings. Most of our recent lending has been in the South East. However, in the last year we have also done transactions in the North West, West Midlands and South West.
Yes. Often our lending is to special purpose vehicles undertaking a single development, so we require personal guarantees from the key promoters of the transaction. This is a measure of their confidence in the project and ensures that they remain interested if things start to go wrong. Potential guarantors will need to demonstrate that they have sufficient net worth to pay a personal guarantee if it is called.
Initially we ask for an overview of the transaction, the key numbers (site cost, construction cost and gross development value), and details of the borrowers’ experience and net worth. From this, our experienced business development managers will provide an indication of interest and a rough pricing guide. If the borrowers are happy with this, we can usually arrange a site visit within a week and, subject to being provided with any required information, we should be able to provide a credit approved offer within a week of the site visit.
We are very conscious that our professional team is a cost that is passed on to the borrower and do all we can to keep these costs down. However, it is important that we have independent professional advice. Over the years there have been numerous occasions when our professional team has picked up issues missed by the borrower’s team. Ultimately, our due diligence has saved the borrowers time and money further down the track.