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June 3, 2020

Zephyr Homeloans launches new suite of buy-to-let mortgage products

Zephyr Homeloans, the specialist buy-to-let (BTL) lender, has launched its new suite of buy-to-let mortgage products offering up to 75% loan-to-value (LTV).

Zephyr has expanded its range of fixed-rate BTL mortgages for standard properties, residential properties, houses in multiple occupancy (HMOs), multi-unit blocks (MUBs), new-build properties and flats above commercial properties, all priced at different rates to reflect different LTVs.

A selection of two-year, five-year and seven-year fixed rates are available in each range.

Rates start at 3.19% for a two-year, fixed-rate, standard property buy-to-let mortgage and at 3.69% for a standard, five-year, fixed-rate loan.

LTVs are available at 60% and 70% across all ranges, and up to 75% on the standard range.

Zephyr will lend up to £1m on its standard range at 70% LTV and up to £750,000 on its other ranges.

Paul Fryers, managing director at Zephyr Homeloans, said: “We’re excited to offer such a wide-ranging suite of products to our clients as the BTL market begins to open up and the market starts moving.

“Our product expansion offers options suited for a range of needs – whether landlords are aiming to continue to invest in new BTL properties or seeking to restructure their existing portfolio.”

June 2, 2020

LendInvest updates bridging finance range reintroducing 75% LTV

LendInvest, the UK’s leading platform for property finance, has refreshed its unregulated bridging product suite relaunching higher LTVs up to 75% as the UK’s national lockdown eases.

Residential bridging rates start at 0.55% available up to 50% LTV, at 0.69% up to 65% LTV, and 0.80% up to 75% LTV with loan sizes available from £75,000 up to £15,000,000.

The lender has reintroduced its auction finance and bridge-to-let highest LTV products at 75% LTV at rates of 0.80%.

LendInvest has updated its development exit product with its highest LTV bracket increased to 70% LTV. Rates start from 0.55% with loan sizes available from £250,000 to £10,000,000.

The lender has also refreshed its commercial bridging suite. Semi-commercial bridging loans will now be available up to 70% LTV with rates starting from 0.79%, Commercial loans up to 65% LTV with rates starting from 0.90% LTV, and Land up to 65% LTV with rates starting from 0.90% LTV. Loan sizes for these products are available from £250,000 up to £15,000,000.

Justin Trowse, director for bridging finance at LendInvest, said: “As we continue to see more encouraging signs across the housing market with projects getting back underway, we feel confident in adjusting our product suite to meet the needs of our borrowers.

“Remaining open for business over the past couple of months has not only ensured we were available to our customers, but has also allowed us to quickly tailor our offering as one of the first lenders to reinstate our higher LTV products. We are hopeful that the coming weeks will see more positive news for both the country and the industry, and we are primed and ready to deliver finance to those who need it.”

June 2, 2020

Claims for stamp duty relief on annexes may fall on deaf ears

Homeowners that buy a property that has an annexe and therefore believe they have purchased two properties and can claim stamp duty relief may be disappointed, say leading tax and advisory firm Blick Rothenberg.

Sean Randall, a partner at the firm said: Last month a tribunal ruled against two individuals that appealed against HMRC’s decision to refuse to repay £10,000 of stamp duty and this will not be the first with reclaim companies frequently making unsolicited approaches to buyers of houses with annexes offering to get stamp duty back for a success fee.

Sean added: “The taxpayers’ argument was that the purchased property consisted of two dwellings, meaning that it qualified for partial stamp duty relief or “multiple dwellings relief”.

Although the property contained an annex and the annex had all the facilities reasonably required for separate living accommodation, it was connected with the main house internally by an open corridor. One of the ends of the corridor had “door jambs” (the doorframe on which a door could be hung).”

Sean said: “ The taxpayers argued that the work involved in hanging a door was merely remedial work and hence the absence of a door on the completion date could be ignored. Alternatively, they argued, that an internal door was not needed to make the annex “suitable for use” as a single dwelling (the statutory test) because the occupants of both parts of the property could be in a trusted relationship. The tribunal rejected both arguments. It held that the property was suitable for use as one joined dwelling.”

He added: “ This is likely to be the first of a number of tribunal decisions on multiple dwellings relief and annexes. In the absence of narrower wording in the statute and the significant tax savings to be made, it is understandable that reclaim companies are testing where the boundary is. One wonders whether the decision would have been different in this case if the required work post completion would have involved reinstating a physical barrier between the two sides to the property rather than introducing a new physical barrier. It certainly shows that small details like this can have a big impact on tax.”

June 2, 2020

Hope Capital launches new product range

Hope Capital today launches a new product range, taking into account the needs of individual customers and catering for the needs of different borrowers and their level of borrowing. The new set of products offers a MINI, MIDI and MAXI loan to choose from.

The MINI Loan starts at just £50,000 and goes up to £150k. This is the first time Hope Capital has been able to offer brokers and their clients loans from £50,000 and is a significant change to its product offering. Hope Capital will now be able to provide a suitable lending solution to even more borrowers.

The MIDI Loan starts from £150,000 and goes up to £500,000, with any loans above £500,000 falling into the MAXI Loan range. These three product tiers allow the loan to be constructed to meet the client’s needs.
Hope Capital has also revised its LTVs and rates in line with the new loan range. Interest rates available start at just 0.54% per month.

The new product range is part of the Hope Capital Custom Collection, which comprises six different products, features and options, all of which are designed to give the most suitable solution for the borrower.

The MINI, MIDI and MAXI loans are designed specifically for residential property and can be combined with other product features and options to meet clients’ needs. For example, there are options for zero fees and discounted rates, and they can also be combined with the existing Hope FleXi product.

By providing this collection of products, Hope Capital enables brokers to offer their clients a loan that is truly customised to meet their needs. Full details on the Custom Collection can be found on the Hope Capital website: https://hope-capital.co.uk/products/the-custom-collection/

Hope Capital continues to lend across mixed-use and commercial property and land as well.

Hope Capital is a leader in the bridging market and known to be a highly flexible and innovative lender. It is dedicated to service excellence, with a team of dedicated BDMs to help brokers to discuss their clients’ needs.

Gary Bailey, managing director of Hope Capital, said: “We’re proud to be launching this new product range which includes our smallest ever loan, starting at £50,000. As part of the new Custom Collection, these three tiers aim to meet the needs of the broker and borrower. Considering the current market, we’ve placed an emphasis on upfront affordability with the new products

“As always with Hope Capital, we aim to offer the utmost flexibility and speed whilst being transparent throughout the process.”

 

June 1, 2020

Scotland’s residential development land market shows resilience

Savills latest Quarter One figures reveal that the Covid-19 lockdown is impacting Scotland’s development sector after a positive start to 2020, pausing housebuilding and slowing the new build sales market, despite pent up demand. However the strategic development land market has been less immediately effected as it is based on longer time horizons, according to real estate adviser Savills.

Whilst many sites are now reopening south of the border, Scotland’s minister for local government, housing and planning, Kevin Stewart said: “We share the ambition of businesses to get back to work as soon as possible, but this must be done with public health and safety as the first priority.” He is chairing a series of meetings of the Restart Group, at which the housebuilding sector is represented, in order to “develop plans to get back to work safely as soon as the medical evidence suggests it is appropriate to do so.”

According to head of development in Scotland Ben Brough, the Scottish market is typified by pent up demand. He said: “Renewed confidence following the certainty provided by the majority secured in December’s general election, marked a turning point for Scotland’s land market. However, whilst this boosted market activity, it did not translate into significant increases in land values due to the continued increase in build costs and limited house price growth.”

UK greenfield land values grew a marginal 0.3% in the three months to mid-March, ahead of lockdown, to bring annual growth to 1.7%, data from the Savills residential development land index show. Urban land values slipped -0.3% in the quarter, and ticked up just 0.4% over 12 month period.

Brough continued: “Despite the lockdown, some land deals, which were already in train, are continuing and once Covid-19 restrictions have lifted, we would expect a busy second half of 2020.

“Whilst the number of consented sites sold has slowed in the short-term, activity in the strategic land market, based on longer time horizons, is continuing as more parties seek out future opportunities, underpinned by healthy fundamentals of supply and demand in Scotland’s housing market. Cash rich developers and investors are actively seeking land. Whilst some are looking for distressed land sales these are not prevalent in the market, and values are being upheld.”

Savills development team in Scotland acted on a combined £80 million of land deals across the country during the first quarter of 2020, including the sale of 482 plots and agreements on a further 1,300 units in various locations.

Edinburgh

Ben Brough continued: “The Edinburgh market has continued to lead the way in the development market and seen the expansion and regeneration of suburbs, particularly around the south and the south east of the city. We expect to see strong activity in the West Edinburgh in the coming months with CALA and David Wilson Homes having commenced ground works for the 655 new homes at Cammo Fields, following a deal we agreed last year. We have also placed the initial phase of West Craigs under offer for over 400 new homes and welcome the successful planning outcome for Murray Estates with 1,350 units as Phase 1 of Edinburgh’s Garden District now with a Minded to Grant planning permission.

“While Covid-19 will have an impact on the timing of the delivery of these new homes, Edinburgh has had a fundamental undersupply of housing and this delivery will help to support the future demand.”

Aberdeen

Head of development for Savills Aberdeen, Graham Reid said: “A number of national housebuilders looking to enter the Aberdeen market, coupled with an increase in demand from active players looking to increase their outlets, was feeding a growing optimism in the city land market at the start of the year. While the current pandemic has resulted in a pause, the expectation is that housebuilders will continue to take a longer term view on the city’s recovery. Aberdeen has shown resilience to micro and macro-economic challenges in the recent past and is proactively diversifying the economy and attracting new investment.”

Glasgow

Head of development for Savills in Glasgow, Jamie Doran said: “Glasgow’s residential development market has been on an upward trajectory with demand for sites outstripping supply, resulting in multiple offers at closing dates. Prime locations have seen greatest activity with recent site in the West End and South Side particularly sought, with a range of bidders including residential, retirement and care home developers offering above expectation. Pent-up demand is continuing through lockdown and we are currently marketing another site suitable for apartments at Charlotte St just off Glasgow’s Merchant City which has generated good interest prior to a closing date being set. In general terms there is strong demand for sites across the Glasgow market.”

June 1, 2020

Landbay introduces LTVs to 75% and recommences physical valuations

Landbay, one of the UK’s leading buy-to-let lenders, today launches a new product range, with loan to values up to 75% LTV. Landbay, which is institutionally funded, has continued to lend on buy-to-let properties throughout the lockdown.

Rates on the new range start from 3.39% and it will also lend both on large and small houses in multiple occupation (HMOs) of up 12 units, multi-unit freehold blocks (MUFBs) and new build properties.

It also continues to offer its hugely popular, lifetime tracker rate with no early redemption charges.

Landbay resumed its physical valuations last week and these are now available on all new buy-to-let applications; it is also working through its pipeline of loans from applications received throughout the lockdown.

All new applications benefit from Landbay’s instant Decision in Principle (DiP), launched at the end of March. This highly-streamlined application process, uses intuitive technology and takes only two minutes from start to finish. Landbay’s whole application process is completely paperless from start to finish and is now completed in just nine simple steps.

In summary, from today Landbay will offer:

  • Up to 75% LTV
  • Rates from 3.39%
  • Lifetime tracker no ERC
  • HMO’s up to 12 beds
  • MUFB’s up to 12 units
  • New build range
  • Instant 2 minute DiP

Landbay’s aim is always to combine cutting edge technology with the human touch. Brokers have direct access to its highly experienced team of underwriters and BDMs who know the mortgage market inside out and who understand the importance of moving quickly to get a case over the line.

Paul Brett, managing director of Intermediaries at Landbay, said, “It is good to be able to support our loyal brokers and increase our range of mortgages, particularly with a 75% LTV product which we have received a huge amount of demand for.

“It has been our aim throughout this challenging period to be a supportive force for brokers and to be a steady presence in the market. And, due to our diversity of funding we have fortunately been able to continue lending throughout the whole of the last two months. This range will now help to give something more to our brokers and their clients, who are keen to remortgage or keep investing in the buy-to-let market.”

May 29, 2020

Lenders confirm support for commercial landlords

The banking and finance industry is today confirming its continued support for commercial landlord customers as part of its ongoing commitment to help business customers through these difficult times.

With the June/July rent quarter soon approaching, lenders recognise that commercial landlords and their tenants may have concerns about their ability to make their payments.

Banks and finance providers are committed to supporting viable businesses and are engaging with their landlord customers ahead of the next quarter day. The flexible support available includes providing capital payment holidays and amending current facilities.

Stephen Jones, chief executive of UK Finance, said:

“Commercial finance providers are working hard to support business customers through these difficult times and lenders recognise that the current situation poses particular challenges for commercial landlords and their tenants.

“A wide range of flexible support is available, including amendments to facilities and capital payment holidays to help landlords and their tenants manage through the disruption.

“As part of the support being provided ahead of the June quarter day all the main commercial lenders are proactively contacting their major commercial landlord borrowers to identify concerns they have and provide support where appropriate.”

Those commercial landlords who are concerned about making loan repayments or require financial assistance during this time and who have not yet been in contact with their lenders should do so through the usual channels.

Banks and finance providers will treat customers sympathetically and will consider their circumstances on a case-by-case basis.

Today’s announcement is part of the industry support for businesses impacted by Covid-19, which includes making available new and extending existing finance, restructuring facilities, providing capital payment holidays and covenant waivers.

Figures published this week show that £27.5bn of lending has been provided to over 650,000 businesses through the three government-backed loan schemes so far with an additional £20.5bn extended via the CCFF commercial paper programme at the Bank of England facilitated by commercial paper programme arrangers across the banking sector.

May 29, 2020

Pluto Finance launches new term loans for residential investment

Pluto Finance has launched a new lending product for professional landlords in the UK’s private rental sector.

With loan sizes from £5m to £50m, Pluto Finance will provide loans of up to 65% LTV for fixed terms of 10 years or longer at a margin of c. 2.5%.

Simon Chapman, lending director at Pluto Finance, comments: “We are delighted to be able to announce the launch of our residential investment term lending programme. We are looking to fund professional landlords with unbroken blocks of flats in major towns and cities throughout England and Wales.”

“Combined with our market leading rates for residential development funding, we can now provide full-cycle development and investment finance for PRS landlords on very attractive terms.”

Pluto Finance is looking to make over £200m of residential investment term loans by March 2021.

This new lending programme compliments Pluto Finance’s existing core products. The specialist property lender focuses on stretch senior, senior and bridging loans, with backing from top-tier global financial institutional investors.

Pluto Finance has been actively lending since 2011 and is currently funding the development of around 2,000 new homes.

May 29, 2020

Nucleus Commercial Finance delivers £50,000 facility to Energy Angels

Nucleus Commercial Finance has provided a £50,000 facility to Energy Angels, enabling the business to continue operating at full capacity during the crisis and provide energy services to social and private landlords.

Based in Wolverhampton, Energy Angels is a leading energy intermediary, helping households and businesses switch providers during void periods and supporting in negotiations with providers for free periods of energy to those in need. The business works closely with local authorities and housing associations to provide energy to the vulnerable and rehomed NHS key workers.

The £50,000 cashflow finance facility from Nucleus Commercial Finance is structured over five years and will be used to clear past loans and remove debentures. It will allow the firm access to a larger cash pot to avoid the furlough of employees and continue their work throughout the pandemic.

Lewis Taylor, founder & managing director, Energy Angels said: “Working with Nucleus Commercial Finance allows us to continue providing our services to those that need it most during these difficult times. The combination of Nucleus’ tech infrastructure, supportive team and the accessibility of information via the online portal led to a quick and accurate approval process, ensuring we got the funding we needed in a timely manner.”

Mark Swindell, business development manager, Nucleus Commercial Finance, said: “We are pleased to support Energy Angels in delivering on its mission to help those in need during the global pandemic. This finance facility benefits from the new five year term on our cash flow offering, which we implemented in response to an increase in demand from small businesses for cash flow finance.

“SMEs in this region of the country are being hit particularly hard by the economic effects of the coronavirus and so it is imperative they can access the finance needed to avoid collapse. This deal shows that we are committed to supporting small businesses in the Midlands now more than ever as it continues to play a key role in the UK economy.”

May 28, 2020

Fiduciam continues to support house builders

Fiduciam, the short-term and marketplace lender, has just closed two development loans, with a total value of £2.5m, with one using its ‘Stepping Stone’ scheme.

The two loans, with values of £1.6m and £900,000 respectively, will provide funding for private developments in south London and on the south east coast.

The first loan took advantage of Fiduciam’s ‘Stepping Stone’ loan, which allows the transfer of equity from one project to another. This helps new projects to start earlier, permitting the developer to do more projects in a year and to grow by simply using the same capital more efficiently. The loan, for £1.6m at an LTV of 55%, allows the borrower to use equity from a recently completed development to fund their new project. This will enable a shop, storage area, and one flat to be converted into five new flats and a shop.

The second deal was a £900,000, 18-month term, permitted development (multi-drawdown) loan for a refurbishment project on the South Coast. The project will see a 19th century derelict period property, purchased at auction, converted into four separate high-end residences of two and three bedrooms. The sale of the individual residences provides the exit for the loan.

Commenting on the completion of these latest loans Marc Morris, case manager at Fiduciam, says “As COVID-19 slows the sale of completed projects it will also generate attractive opportunities to purchase new sites. The possibility of transferring equity from one project to the next will become ever more attractive and Fiduciam expects to see more applications for its ‘Stepping Stone’ loans over the coming months.

Ryan Parrett, business development manager at Fiduciam, added “Fostering long term relationships is at the heart of our business. In fact, the £1.6m ‘Stepping Stone’ loan this month was for a client who came to us a few years ago for an initial £200k loan. One of the joys of working with entrepreneurs and developers over a number of years is that we see, and are instrumental in, how their businesses grow.”

 

 

 

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