MontpelierPF achieved terms at 65% net (interest rolled up above this) for a developer exit loan, secured against a semi commercial asset in London. Priced at an extremely attractive 0.65% per month and on a cululative/break value basis, despite leases not being created on/before completion. There was a shortfall in the level of funds required to settle the development finance lender but these were achieved by way of a 2nd charge (for business purposes) against the borrowers home, once again at the 0.65% per month. We were delighted to work with such a proactive can-do approach lender.
MontpelierPF prides itself in being at the forefront of the PBSA debt finance market. In light of the stretched senior market all but disappearing overnight when Covid19 hit, we had been working closely with senior and mezz lenders, so as to ensure we can still look to achieve the gearing that was being achieved back in 2019. 90% loan to cost, equating to just over £20m, was procured for a consented PBSA studio scheme in Edinburgh,
90% LTC with no PG's
We were approached by a potential client, who found us on Google, who was looking to acquire an agricultural building with consent to convert into three family dwellings. The client had been let down by the previous two lenders, to whom an application was made, following the introduction by his then current broker. MontpelierPF stepped in and having fully assessed the clients wants and needs, it became evident that any potential lender who’d ask for a limited/full personal guarantee, simply wouldn’t achieve the comfort required. We therefore focussed our efforts on a lender who offered the 90% loan to cost sought and equally as important, one who did not have a requirement for a personal guarantee.
94% net loan to purchase price
Our seasoned developer client had exchanged contracts for a consented Purpose Built Student Accommodation scheme (PBSA) for a nominal consideration, with a long-stop completion. The developer utilised the 9mths between exchange and completion to improve the existing internal configuration through a Section 73 agreement, thus enabling an additional 27 beds. This uplift in the number of beds achieved an increase on the Residual Land Value of £1.5m, even before our client had completed on the acquisition.
The developer, who typically acquires half a dozen sites a year, needed to commit as little of his own funds as possible to enable completion, whilst ensuring he retains a healthy cashflow.
Facility Provided: We secured bridging finance; leveraged against the uplifted Residual Land Value for this purchase, rather than against the contract purchase price. Ultimately achieving a gross advance of 103% loan to contract purchase price / 94% net. Pricing was at 1% per month, with a 2% lender facility fee and no exit fee, over a 9 month term
An existing developer client of ours, who we procured development finance for a semi-commercial scheme in South West London, asked us to arrange a long term commercial mortgage so as to repay the development lender.
The hurdle that needed to be overcome was that the client wanted 70% loan to value, so as to redeploy some capital, however the debt service cover ratio (affordability calculation) didn’t support this level of gearing based on published rates/pricing.
Facility provided: We secured a lower bespoke pricing from a Challenger Bank on a 5yr fixed rate, so that the affordability calculation was improved and could subsequently support the level of debt/gearing sought. Pricing offered at 4.55% per annum which was fixed for 5 years on an interest only basis and subject to a 2% lender facility fee.
Our repeat specialist HMO developer clients returned to Montpelier Private Finance, seeking funding to acquire a 3 bed Victorian mid terrace in South East London. Their plan was carry out a loft conversion and a complete internal reconfiguration, so as to achieve a 6 person HMO, all with en-suites.
The challenge faced was that the proposed HMO was not in an area where there’s an existing proven market for such an asset class.
Facility provided: Utilising a well established relationship with a specialist can-do approach funder, Montpelier Private Finance was able to present a robust rationale for lending. Pricing achieved being a 2% lender facility fee, 0.79% per month, 15 month term and no exit fee