Development finance lending criteria

Our standard development lending criteria is shown below, but we can consider some applications beyond this

The applicant

Experience

We lend exclusively to applicants with property development experience

We will also assess the experience of the professional team involved in the project

 

Residence

The main applicant(s) must reside in the UK

Any Special Purpose Vehicle (SPV) must be domiciled in the UK

 

Special Purpose Vehicles (SPVs)

Acceptable SPVs include:

  • Limited companies (Ltd)
  • Limited Liability Partnerships (LLPs)
  • Public limited companies

Each Director, Partner (in the case of an LLP applicant) or member is required to complete and sign an application form

 

Adverse credit

We will not consider the following forms of adverse credit:

  • Bankruptcy
  • Repossession or voluntary repossessions
  • LPA receivership
  • Administration

The property

Location

The property must be located in one of the following regions:

  • England
  • Wales
  • Scotland

 

Security

A first legal charge over the property will always be required along with a debenture and personal guarantee

 

Planning consent

Full, detailed planning consent must be in place for the proposed development

 

Tenants

We will not consider applications where the tenant is or will be any of the following:

  • A family member of the applicant
  • The previous owner of the property

 

Property size

All apartments must always be the following sizes at a minimum:

  • 30m2 or over (outside London)
  • 25m2 or over (inside London)

 

Warranties

NHBC or equivalent warranties must be in place

Collateral warranties with step in rights will usually be required

The loan

Interest

Interest will be rolled up until redemption of the facility and is calculated within the LTV/LTGDV limits

 

Deposit

We will always require evidence for the deposit

 

Legal representation

Separate legal representation is required on all development projects

 

Exit route

There must be a viable exit route for all development loans

 

Please note that this web page represents a sample of our lending criteria and is not exhaustive.