Product Guide - LendInvest · Bridging Loan Development Loan • Property development • Ground up builds • Buying property at auction • Short-term cash flow requirements •

Product GuideShort-term property finance

020 7118 [email protected]

intermediaries.lendinvest.com2

Outside of our criteria? Get in touch to discuss your case.

Welcome

OUR PRODUCTS

Development LoanBridging Loan

• Property development• Ground up builds

• Buying property at auction• Short-term cash flow

requirements• Refurbishments• Extensions

Development - pg.8Criteria - pg.10 to 12

Bridging product overview - pg.4Residential Tier 1 - pg.5Residential Tier 2 - pg.6Commercial - pg.7Criteria - pg.10 to 12

Loans from £250k to £10 million

Loan to GDV up to 65%

Terms up to 24 months

Loans from £100k to £7.5 million

LTV up to 75%

Terms up to 12 months

Often used for:Often used for:

Key PagesKey Pages

Welcome 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.




MEET YOUR DEAL TEAM

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

The team can provide assistance on all our products.

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

Magnus-Duke [email protected]

+44 (0)795 632 9292+44 (0)20 7118 1133

Michael [email protected]

+44 (0)790 085 6380+44 (0)20 7118 1133

Peter [email protected]

+44 (0) 7717 752 125For Scotland

Alex [email protected]

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

Justin [email protected]

+44 (0)783 477 3977 +44 (0)20 3846 1133

What we do What we won’t do

• Unregulated loans

• Lend on property in England, Wales and Scotland

• Bridging Finance

• Development Finance

• All property types considered

• Regulated loans for owner occupied property

• Consumer buy-to-let loans

• Lend on property in Northern Ireland




Bridging product overviewThe 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. Turn to page 5 to see if your property fits and pages 10-12 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. Turn to page 6 to see if your property fits and pages 10-12 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. Turn to page 7 to see if your property fits and pages 10-12 to confirm that the borrower(s) meets our lending criteria.

RESIDENTIAL BRIDGING TIER 1

RESIDENTIAL BRIDGING TIER 2

COMMERCIAL BRIDGING




Residential BridgingTier 1

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.

DESCRIPTION

OUR CRITERIA

LTV Monthly interest rates from

≤40% 0.65%

≤50% 0.70%

≤60% 0.80%

≤65% 0.85%

≤70% 0.90%

≤75% 0.95%

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

Min loan size £100,000 Arrangement fee* 2%

Max loan to value 75% Early redemption fee None

Valuation fees Market rate Legal fees Market rate

Accepted Not accepted

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

Refurbishment Property 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

Tenure Freehold, 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 Less than three CCJs in the last three years, provided they have been fully satisfied.

Any past history of bankruptcy. Any arrears on secured loans within the last 36 months.

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

Outside of our criteria? See Residential Bridging Tier 2.




Residential Bridging Tier 2

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.

DESCRIPTION

OUR 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%





Accepted

Property Residential, HMOs, non-standard construction properties.

Refurbishment Light 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.





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.

DESCRIPTION

OUR CRITERIA

LTVMonthly interest rates from

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.

Refurbishment Light 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




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.

DESCRIPTION

OUR CRITERIA


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

Max loan to value (land)

65% (including interest) Exit fee None

Max loan to GDV 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%

Development




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: 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: UK only.

Corporate

Company originUK limited companies. Non-UK possible. Please get in touch.

For Tier 1 Bridging: 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: 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




General requirementsGeneral requirements

Servicing - Bridging/Development

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

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 willbe liable for their costs. The solicitor acting for you (to be acceptableto 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 securitybeing offered. You will be required to pay the valuers fee direct to the firminstructed when requested.

Deposit On all purchase cases the source of deposit must be disclosed. LendInvestmay 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: 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 allappropriate licences in place at the time of application. Properties beingpurchased with an intention to use as an HMO should have licences in place as soon as practical after completion.

For Tier 1 Bridging: Not accepted.

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

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




Personal credit profile

Bankruptcy/IVA

No 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: No bankrupcy.

County Court Judgements(CCJ)

All CCJs must be satisfied and should not exceed £5,000. If more than oneCCJ 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: If more than three CCJs are present in the last three years, case will be denied.

Mortgage/secured loans All secured loans should be up-to-date at the time of application with noarrears greater than one monthly payment in the last 36 months.

Unsecured loans/revolvingcredit

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

Criminal convictions Not permitted unless relating to motoring offences, or at the underwriter’sdiscretion.

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 1133Email [email protected] intermediaries.lendinvest.com

Documents

Product Guide - LendInvest · Bridging Loan Development Loan • Property development • Ground up builds • Buying property at auction • Short-term cash flow requirements •