Residential development

Maximum commitment

£5,000,000

Minimum commitment

£400,000

Usual commitment period

1 year to 18 months

Debt Commitment Value (CTV)

Senior debt available up to 55% of gross development value.

Mezzanine debt available up to 65% of gross development value.

Percentage of costs

Negotiable, but generally within the overall debt CTV limit, we will fund up to:

• 100% of development costs
• 100% of interest
• Balance of facility for site/land costs

Site considerations

Within areas of relatively high employment in the England and Wales.

Sites to have at least outline planning in place prior to lending.

As a guide, we prefer projects to show a minimum target profit of 20% on costs.

Valuation/monitoring

Bank's valuer and surveyor to assess construction costs, development timetable and cash flow prior to drawdown and certify work (usually monthly) throughout the development.

Security to include

• First charge on property
• Floating charge (corporate borrowers)
• Assignment of building contract rights
• Collateral warranties from major contractors/sub-contractors where necessary
• Personal Guarantees
• Life cover