Securing finance for your next project
CONTENTS Hello & Welcome
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The Lending Environment
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Vision Statement
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What We Do
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Development & Refurbishment Finance
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Bridging Finance
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Auction Finance
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Commercial Mortgages
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Contact Us
HELLO & WELCOME Vision Finance is a leading London based advisor focusing on specialist real estate financing. We have direct access into the lenders that are actively lending to property developers and investors right now. We offer an unconflicted, client focused service that draws on the team’s experience, track record, and longstanding relationships. Our expertise lies in arranging finance for property developers and investors who require funds for the following purposes:
• Property Development • Property Refurbishment • Property investors requiring funds quickly • Property investors requiring financing for
When time is of the essence we believe communication is vital. We will often meet clients the same day a debt financing enquiry is submitted to us, and where time pressure requires it, we can arrange a meeting with the decision makers at the lending institutions within 24 hours. Vision Finance operates in a highly professional manner and our substantial experience is always on hand to assist you. We act as a trusted adviser for our clients, not just during the transaction, but on an on-going basis. As your advisor, it is our responsibility to source the most suitable and competitively priced finance for your project or investment. We will source, structure and negotiate with the lenders on your behalf, leaving you to do what you do best – run your business.
un-mortgageable properties
• Businesses and property investors purchasing Commercial Property
Vision Finance is a proud member of:
Vision Property Finance
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THE LENDING ENVIRONMENT The banking market has gone through a period of considerable change since the start of the credit crisis, with credit conditions now much tougher, at least in the context of conventional lenders. In the past, traditional High Street banks were willing to lend at higher LTV’s, higher GDV’s, and at lower margins. However, many of these lenders now perceive development finance to be risky, and they are actively reducing their balance sheet exposure to real estate. Frequently property professionals are having difficulty securing appropriate debt packages. This can significantly impact on the type of projects they can undertake, and often leads to them missing out on profitable opportunities.
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The good news is that there are now over 20 specialist lenders in the market with significant funds to lend, many with targets to get even more money “out the door”. Today it is imperative to engage an advisor that understands who is lending in the current market, for what purposes, and which lenders have a specialism for specific project types. By using our experience and market knowledge we can help developers and investors raise debt finance for new projects, refinance existing debt facilities, negotiate amendments to existing financing packages and negotiate extensions in distressed situations.
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VISION STATEMENT We are passionate about client service and client satisfaction. All of our clients have one key facet in common – they are seeking a specialist advisor who will work tirelessly to ensure they have access to the most competitive products in the market, specifically tailored to their circumstances.
Our Vision We are committed to consistently exceeding the expectations of our clients by efficiently delivering focused, unbiased financial solutions of the highest quality.
Our Culture As a specialist advisor of real estate financing, where our work can often involve pressing timescales, we understand the importance of getting deals done swiftly and painlessly and communicating with our clients succinctly and effectively. We understand the primary pressures facing our clients: time and money. The culture at Vision Finance is based on a professional approach, in depth knowledge of the whole market, and a passion for getting the best deal for our clients. We operate in an honest and transparent environment here at Vision Finance, and we make every effort to meet our clients. If you are based in London, or just passing through, please let us know and we will be delighted to discuss the lending market or a specific case. Our contact details can be found at the back of this brochure.
Why Choose Vision Finance?
• Knowledge of the specialist lender universe and relationships with key decision-makers
• Understanding of the property market, lender appetite and
product knowledge saves our clients time and effort, as well as increasing the chances of a successful transaction
• Experienced at running competitive processes to drive lenders to work on terms and pricing
• Hands-on philosophy from beginning to end
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WHAT WE DO Vision Finance specialises in raising finance on behalf of clients based all over the UK. Our team has extensive experience securing the following types of finance:
• Development Finance, including Mezzanine • Refurbishment Finance • Bridging Finance • Commercial Mortgages
Vision Finance will undertake the following programme of work on behalf of our clients:
• Approach a number of lenders to discuss the transaction and their willingness to finance the project
• Prepare presentations which positively and accurately describe the development and the use of funds
• Meet with interested potential lenders, present the project, while answering any questions they may have
The following pages of this brochure provide further detail in relation to the types of financing noted above.
• Obtain a written conditional offer from each potential lender
Borrowers need to have a well-articulated proposal, which addresses the key issues of concern to the lenders. Failure to impress on the first attempt rarely leads to a successful outcome so planning and preparation are essential.
• Lead the negotiations to structure a deal with the
willing to finance the transaction and select the preferred lender based on price and structure preferred lender
• Prepare and arrange for you to sign the Formal Offer / Heads of Terms
• Steer the deal to a successful legal completion working closely with your solicitors
Our approach is to work closely with the property developer or investor to identify the most appropriate financing structure. We then help them assess each funding option and execute the preferred solution using our in-depth understanding of the market to secure the best terms in an efficient timescale. All advice and assistance is given on an independent and objective basis.
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DEVELOPMENT & REFURBISHMENT FINANCE
A development loan is a debt facility secured by way of a legal first charge on a property, which will need to be Freehold or long leasehold. Development loans can be made to an individual or a company, including overseas entities.
Vision Finance will work with developers to attractively position the case for finance before speaking to lenders. This will include the key details relating to the current case, while emphasising past successful property transactions.
Lending Criteria
Our advisors have specialist knowledge in arranging finance for a variety of property development projects – be it a new-build construction or converting existing properties - we have the resources to help you.
Development loans and Refurbishment finance generally run for a period between 6 months to 3 years, and we work with a variety of lenders willing to lend from £100,000 up to £25 million. Typically we see lenders funding up to 100% of the construction costs, and will generally lend up to 65% of the GDV. In addition, refurbishment loans do not carry an Early Repayment Charge, and development loans can be structured without a profit share for the lender.
Please find our contact details on the inside back cover and we will happily discuss your project with you.
Vision Finance is also able to arrange mezzanine finance for developers requiring a higher LTV, typically up to 90% of all costs. The experience, background, and financial position of the developer is crucial to securing finance at attractive rates and GDV percentages. Understandably, lenders are keen to support successful developers with a proven track record.
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BRIDGING FINANCE Bridging Finance is a short-term loan secured against property or land for periods of 1 day and up to 24 months. Vision Finance can arrange bridging loans for amounts ranging from £50,000 up to £25 million.
Typical uses for Bridging Finance
Bridging loans can be arranged quickly, usually within 2 weeks from initial enquiry, and security can be provided by one or more properties on a first, second and even on a third legal charge basis.
Un-mortgageable properties - due to poor condition or length of lease remaining
Typically bridging loans are available for up to 85% LTV or LTP (depending on the lender), and no Early Repayment Charges are payable on bridging loans. Lenders take a pragmatic approach based on the current value of the property, and do not focus on metrics such as income multiples. Bridging loans are designed to be flexible, and Vision Finance, together with the lender and the borrower will structure the loan in the most appropriate way. This can include no upfront fees and flexible repayment schedules including no interest payable throughout the life of the loan.
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Borrowing capital quickly - opportunity to secure a great deal if the buyer can complete quickly
Planning permission - where planning permission needs to be obtained before development finance can be raised Broken property chain - purchase a new property before existing property is sold Bridging Finance offers the borrower complete flexibility, and finance can be arranged in a matter of days, and may often be your most suitable financing solution depending on your particular circumstances.
AUCTION FINANCE How bridging finance works for auction purchases Typically a buyer will use their own funds to secure the property and pay down 10% of the purchase price on the day of the auction. As bridging loans can be put in place quickly, they are often used to fund the outstanding balance which is required by the date of completion - usually within 28 days. This makes bridging loans ideal for auction purchases, not only because a standard lender is unlikely to complete within the 28 day time frame, but also because properties that are in a poor state of repair are unlikely to meet a traditional lenders lending criteria (for example no bathroom or kitchen), and as such bridging loans can facilitate buying properties that are in need of major works. Our Auction team will fast-track applications relating to auction purchases to the most suitable and cost-effective lenders from our panel. This will ensure appropriate finance is arranged well within the completion period. We do advise our clients to get in contact with us before the date of the auction. We are always keen to discuss the solutions we offer to auction property purchasers and the lending you can expect to obtain. Additionally, we have strong relationships with our large panel of lenders, and many are happy to provide us with a no obligation Agreement in Principal before you attend the auction.
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COMMERCIAL MORTGAGES A commercial mortgage is a loan secured against a property that is used for business purposes, for example offices, shops, hotels, restaurants, pubs, warehouses and factories. We are able to raise finance for owner-occupier clients, for example businesses looking to purchase their own premises, and we also work with a range of investors looking to purchase (or refinance) commercial property assets. We work with lenders which will consider lending on most types of commercial property (including semi-commercial property) and our client focused approach means that we tailor a financing package to meet our client’s particular circumstances. Key features of commercial mortgages:
• Up to 75% LTV (100% available with additional security) • Loans from £25,000 to £10 million • Loans from 3 – 30 years • Capital and Interest repayment or Interest only • Individuals, Limited companies, or Offshore entities • Semi-commercial (for example flats above a shop) • House of Multiple Occupancy – HMO’s
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We believe it is important to meet regularly with our clients. We are always keen to discuss the current state of the market, latest trends, and new products available which may be suitable for you. If you would like to arrange a meeting, please do give us a call and we can either come to you, or arrange a meeting at our offices. We look forward to meeting you soon. Alternatively, if you would prefer to speak to one of our advisors, we will gladly discuss any of our services described in this brochure with you.
CONTACT US Vision Property Finance Ltd 10 Bloomsbury Street London WC1B 3SR Telephone: 0207 206 2500 Email: info@visionfinance.co.uk www.visionfinance.co.uk Vision Property Finance
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Vision Property Finance Ltd 10 Bloomsbury Street London WC1B 3SR Telephone: 0207 206 2500 Email: info@visionfinance.co.uk www.visionfinance.co.uk
Vision Finance is a specialist advisor raising development finance, bridging finance, and commercial mortgages for clients across the UK. We provide direct access into the leading lenders that are actively lending to property developers and investors. Vision Property Finance Ltd is a member of the NACFB and AOBP.