COMMERCIAL ANDDEVELOPMENT FUNDING

CONTENTS

DEVELOPMENT LOANS

COMMERCIAL MORTGAGES

UNSECURED BUSINESS LOANS

BRIDGING LOANS

BUY TO LET MORTGAGES

ASSET/EQUIPMENT FINANCE

MEZZANINE FINANCE

ABOUT US

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CONTENTS

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DEVELOPMENT LOANS

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Available for all types of projects whether for a single or multi-plot site

Funding is available for all parts of the UK

Loans available up to 60% of the Gross Development Value of the site which can be split for purchasing the site and completing the build works

Terms from 6 months - 2 years

Interest Rates from base + 3.45% (as at July 2015)

Options with regards to fee structures for both Arrangement and Exit Fees

Funding for both Residential and Semi Commercial, houses, flats or apartments

An example of a typical type of lender (others use a similar format)• Multiple award winning lender• Self-funded principal lender• Decisions in minutes• Funds within days• Facilities from £100,000 - £20m (larger facilities considered)• Fund up to 50% of GDV• Fund 100% of build costs • Refurbishments and conversions

Case study• Loan of £4,000,000 (60% of GDV) • Interest Rate 4.2% • Term - 24 months • Arrangement Fee - 1.25% • Exit Fee - 1.25% of funds

DEVELOPMENT LOANS

COMMERCIAL MORTGAGES

Available for all types of businesses

Loan To Value up to 70% Bricks and Mortar Valuation (higher is possible with additional security)

Available for both existing businesses and start ups

Terms from 15 - 25 years (30 years possible)

Interest Rates from 2.84% over Bank Base Rate

Business Plan and Cash Flow Forecasts to be provided

Figures to confirm serviceability of the Lenders debt

Case study• Freehold Restaurant • Loan of £325,000 • Interest Rate 2.84% • Term - 10 years • Arrangement Fee • Valuation and Security Fees

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COMMERCIAL MORTAGES

UNSECURED BUSINESS LOANS

Funding is available for any type of business whether it be a Sole Trader, Partnership or Limited Company

For loans above £25,000 the business must have been trading for more than 2 years and have a turnover of more than £100,000 per year

For loans below £25,000 loans are assessed on a credit scoring basis with our panel of Lenders and are available for both start up and existing businesses

Rates can vary from 7% - 12% with usual repayment terms of 5 years

Typical type of lender• Decisions within 24 hours from submitting the loan application• Funds within 10 days • Available for any purpose• Facilities up to £250,000• No business plan required

Case study• Engineering Business • Limited Company • Loan of £40,000 • Interest Rate 8.57% • Term - 3 years

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UNSECURED BUSINESS LOANS

BRIDGING LOANS

A bridging loan is a type of loan that is used to cover shortfalls between buying one property and selling another, or to cover a business whilst conventional funding is arranged

A bridging loan can be used for a house purchase, new business equipment or an unexpected bill

The most common uses for bridging loans are as follows:

Purchasing a property – whilst waiting for the current property to sell/complete

Buy To Let opportunities:• Land purchases• Purchasing property at auction• Developing and refurbishing a property• Business finance opportunities• Payment of Tax and VAT

Loans available up to 70% of the Market Value of the property (higher may be considered)

Terms from 6 months - 2 years

Interest Rates from 1% - 2%

Options with regards to fee structures for both Arrangement and Exit Fees

Funding for both Residential and Semi Commercial, houses, flats or apartments

Case study• Care Home Freehold Purchase (completion 28 days)• Loan of £600,000 (80% of Freehold Value)• Interest Rate 1.2%/per month• Term - 12 months• Arrangement Fee - 2% • Exit Fee - 1.5%

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BRIDGING LOANS

BUY TO LET MORTGAGES

Available for Residential, Commercial and HMO’s (House of Multi Occupancy)

Residential:Loans up to 70%Terms up to 25 yearsRates from 3.75% (subject to status)Rental cover from 100% - 175%

Commercial:Loans up to 60%Terms up to 20 yearsRates from 9.99%Rental cover from 100% - 175%

HMO’s:Loans up to 70%Initial 3-year dealsInterest Rates from 9.99%Rental cover from 100% - 115%

Case study• Residential Buy To Let• Loan of £500,000• Loan To Value 50% • Interest Rate 3.75% • Term - 25 years • Arrangement Fee - 1.5% • Rental Cover - 125%

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BUY TO LET MORTGAGES

ASSET/EQUIPMENT FINANCE

Asset/Equipment Finance – available to existing businesses, for new purchases on equipment or vehicles

Leases are available for up to 5 years with the monthly rental payments off set against tax

Sale and Leaseback can also be made available for owned business assets usually over a 3-year period

Decisions from Lenders usually within 48 hours unless the Asset is difficult to value and then an independent valuation will be taken

Typical type of lender’s requirements:• Terms up to 5 years• New start ups considered• Leases from £700 up to £20,000• Response within 24 hours• Homeowners• No bank statements or initial rental cheques required• Lending throughout the UK• Most sectors considered• Higher funding available with additional security

Case study• Funding for Body Spray Shop• Assets• Existing Business Assets• Loan of £13,000• Monthly Repayments £603 + VAT• Term - 36 months

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ASSET/EQUIPMENT FINANCE

MEZZANINE FUNDING

Mezzanine development finance (or “mezz finance”) is provided to bridge the gap between senior debt funding and the developer’s equity investment into a property development transaction

Mezzanine finance is largely required to be invested into the project on day 1 to contribute to the purchase or the re-finance of debt, therefore it is extremely important to minimise the rate as this will likely be the greatest relative contributor to the overall cost of finance

Typical type of applicantRequiring a level of funding achievable through a combination of senior debt and mezzanine facilities

Case studyOur clients secured a site in Torquay for a development of 18 houses within a development site that included 33 houses and apartments

The bank was due to foreclose on the vendor, and our clients had to respond quickly, in order for the vendors to release funds to continue with the refurbishment of the Main building into apartments

We have agreed a purchase price of £1m for the site, payable in two tranches, with £550k being payable at the front end, with a deferred payment of £450k, however with the bank releasing full title on day 1

Deal Structure:• Client funds : £550k • Senior debt facility (Land & Development) £3.7m • Mezzanine facility £450k • Monthly Interest 2.0% (rolled up to completion of the project)• Project GDV £6.2m

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MEZZANINE FUNDING

FLEXIBLE LENDING FOR BUSINESS

ABOUT US

Commercial Development Funding UK are specialists in arranging asset and non - asset backed finance across a range of sectors, with a focus in the property market.

E: Enquiries@cdf-uk.com

T: 020 3290 7032

W: http://www.cdf-uk.com

Orchard Lea Drift RoadWinkfieldWindsorBerkshireSL4 4RU

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