Hertfordshire Business Funding

Hertfordshire Business Funding Hertfordshire Business Funding specialise in helping business owners secured funding, ranging from bank loans, invoice finance to asset finance and grants.

06/09/2017

Houses sell for more during the school holidays!
A recent survey by online estate agent eMoov has uncovered an interesting trend in house prices identifying that houses sell for more during the school holidays! With an increase in prices of more than £12,000 on average! Their data uncovered that average selling prices for properties during term time were £296,100 and £308,150 during the holidays.

Russell Quirk, founder and chief executive of eMoov.co.uk, said: “As we wave goodbye to summer and finally see the kids return to school many will pause for a breath and a well-deserved cup of tea.”

The autumn half term is the best time to sell, as most customers want their transactions completed in good time before Christmas.

In other news, re-mortgage activity was strong in June of 2017, whilst the housing market growth has slowed down nationally, and there are a reduced number of new purchases taking place with a reported £20bn of lending taking place in July, against a £21.5bn in June 2017.

Remortgages were up to £7.3bn up from £6.6bn of remortgages in June 2017.

This may be a sign that house owners are locking in on low interest rates now, as opposed to sticking on variable rates.

The view from the market is that things are not growing as quickly as previously, but the market has not yet stalled, indicating that there is still a further period of growth in select areas before the market drips off.

Hertfordshire Business Funding specialise in Buy-to-Let, Commercial mortgages, bridging finance, development finance and mezzanine funding contact us today to discuss your funding requirements.

Hertfordshire Business Funding https://www.hertfordshirebusinessfunding.com

05/09/2017

What Is Mezzanine Finance?
Mezzanine Finance for property is a type of funding which will typically sit behind the senior debt or first charge lender as it is often called. The mezzanine funding will enable a property developer to complete a development opportunity whilst having to put in less of his own money than would be required without the mezzanine financing. Here we will discuss What Is Mezzanine Finance?

Mezzanine finance enables a developer to complete development, albeit the costs associated with mezzanine finance are typically more expensive than normal senior debt.

Terms Available for Mezzanine Finance

Mezzanine finance lenders will offer a variety of different terms depending on the experience of the developer, the margin on cost which the development opportunity has inbuilt and the area which the development is due to take place.

Most mezz lenders will offer a second charge facility behind the first charge and rates are available from 0.75%-2% per month from different lenders.

In terms of loan to cost (LTC) on the development, again this will vary depending on the lender, but Hertfordshire Business Funding have got facilities agreed at up to 90% loan to value (LTV) and 100% of loan to cost (LTC).

Most developers will look at mezzanine financing costs in conjunction with their senior debt, and will normally consider these facilities as a “blended” rate of finance.

For example if the senior debt facilities were priced at 4.5%, for 60% LTV, and the mezz was priced at 12% for 35% LTV and 100% LTC, then the blended rate may be between 7-9% depending on the proportionate sizes of the facilities.

Mezzanine Funding Underwriting

There are an increasing number of development finance funding organisations with increasing competition for facilities. The underwriting process is normally quite straightforwards with the lender evaluating the developer and also the project, making sure that there is suitable headroom in the opportunity.

Typically Mezzanine Finance will be available on a phased release basis, and so will be available once the developer and his team have achieved certain milestones as part of the development process.

Hertfordshire Business Funding specialise in complex and technical funding with a particular focus on property development funding. If you are seeking funding for your current development projects it would be an absolute pleasure to assist you with your funding requirements. Contact us today and we would be pleased to assist.



Hertfordshire Business Funding https://www.hertfordshirebusinessfunding.com

05/09/2017

Loans To Buy Land

Hertfordshire Business Funding specialise in providing a combination of debt and equity to companies. Here we will discuss the potential options for loans to buy land.

There are a number of different financing options available for property developers who are seeking to buy land, these include:

Bridging Loans – these are short term loans which can be used to buy land and other buildings. There are an increasing number of lenders in this marketplace and loan to values’ are becoming increasingly competitive. Therefore you may be able to achieve up to 75/80% loan to value. The benefits of bridging lending is that they are normally pretty quick, and can often get facilities completed within 7 days. The negatives are that bridging facilities can be expensive, with rates starting at circa 0.4% per month, up to 2% per month. Bridging loans start at 3 months duration and it is possible to get an extended term to around 24 months. The bridging lender will want a clearly identified exit strategy to ensure that they are going to get repaid. Bridging loans are available from £250k .

Commercial Mortgages – are longer term facilities which are available from both high street and challenger banks. These will typically have a longer term facility with a minimum of 12 months, up to 30 years. The application and approval process for a commercial mortgage facility will normally take 2 weeks plus, more realistically 1 month to get implemented. Rates for commercial mortgages are normally on a variable basis and it is possible to achieve 3.5% above LIBOR (London Interbank Offered Rate). Commercial mortgages will typically have lower LTV’s than bridging loans, and will normally offer up to 65% LTV.

Development Finance – In some instances it is possible to get one lender to provide a multiple facility loan. This will typically start off as a bridging loan, once planning consent has been achieved then the lender may in some instances then provide a development finance facility on top, to enable a developer to build out a scheme. Each element of the loan will be underwritten by the lender on it’s merits, and will have variable interest rates.

If you are interested in securing a loan to buy land, Hertfordshire Business Funding would be delighted to assist. We work with a number of the UK’s leading property funding houses, development finance and bridging finance facilities. Contact us today for a free no obligation initial consultation.

Hertfordshire Business Funding https://www.hertfordshirebusinessfunding.com

28/01/2017

Hertfordshire Business Funding was formed to assist local businesses with securing funding. We have a wide and diverse range of lenders from large banks, to private equity backed boutiques and private individuals who will also lend.

Please contact us today for a free consultation so that we can understand your business and funding requirements and we will get your funding secured today!

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Saint Albans
AL11JB

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Monday 9am - 6pm
Tuesday 9am - 6pm
Wednesday 9am - 6pm
Thursday 9am - 6pm
Friday 9am - 6pm
Saturday 9am - 6pm

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+441727537272

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