Debt Advisory

Bridging loans can be arranged quickly, but typically the cost of borrowing is higher than a traditional mortgage.

They can be used as a short term alternative to a traditional mortgage on any type of building, or for development or refurbishment projects that do not qualify for a traditional mortgage. Bridging loans can be complicated and an exit strategy should be in place – our expert team can help.

These can be single assets or portfolios and lending is generally up to 85% loan to value (LTV).

Each specific case will depend upon the property type, property location and tenancy type. There are a wide range of lenders that operate in this sector and we will match your requirements on pricing, gearing, repayment type and loan term.

Development funding can be for new builds – whether a single house, a multiple unit house project or for apartment blocks.

It can also be used for conversions of property such as commercial to residential under permitted development rights or from larger single unit residential properties into HMOs or individual flats.

This type of lending is assessed on a case by case basis and no two applications are treated the same. Funding can be by way of senior debt finance, stretched senior finance or in a combination with mezzanine finance and/or equity finance. Our bespoke service ensures that we will find the right financial structure for the client profile, property location and scheme details.

We operate a simple five step process to delivering the best results

 

1. Diligence

Our first stage will include client onboarding protocols and understanding both the transaction and the needs of our client. We pride ourselves on our ability to understand what our clients want and how we can best deliver this service to them. Our request for information will be full, but organised to save time and admin.

2. Market analysis

During our market analysis we will break the deal into its component parts and attempt to deliver best value for the client. We use our own bespoke software program to match funders to each element of the deal. We will approach the market and offer the transaction to a select and individual collection of funders, suited for the requirements.

3. Presentation

We deliver a range of solutions for our clients and during our presentation process we will demonstrate the appetite of the market, costs of funds and highlight the equity investment required from the client.

4. Proposal

The proposal process will be bespoke to each funder, however the same professional instructions remain the same where valuers and project monitoring surveyors are instructed to provide reports. Hallcroft are critical to this part of the transaction, where we can add strategy to the professionals instructed and desktops valuations where necessary.

5. Completion

We are very much ‘hands-on’ during the completion process and will work with the funder and your solicitors to expedite the final terms of facility or investment contracts. This essential support can involve detailed negotiation of default clauses or using market knowledge to limit the level of personal guarantees.