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June 24, 2020

FIBA hails success of its buy-to-let webinar series

Specialist finance trade body FIBA, part of The SimplyBiz Group, saw over 1000 brokers sign up for its recent series of four exclusive live webinars conducted by Roger Morris of Precise Mortgages.

The webinars were organised as part of FIBA’s stated strategy to help raise standards and professionalism along with creating a greater understanding of the buy-to-let sector by advisers, particularly for FIBA and SimplyBiz Mortgages members.

The sessions covered the effects of legislative changes, taxation, structures of ownership, HMOs and landlord engagement and gave advisers the opportunity to hear from Roger Morris, acknowledged to be one of the foremost experts in the field, both as a lender and a landlord in his own right.

Online questionnaires completed by advisers attending the webinars showed that 30% were new to BTL, with even a small percentage coming on board as they were returning to giving BTL advice with 63% already supporting landlords as clients.

Overall, 47% of respondents were keen to expand their service to landlords, 19% were looking to learn more to establish whether to move into the BTL space and over a third wanted to offer added value to their existing landlord clients.

The session dealing with HMOs found that 26% of the audience were experiencing difficulties finding finance for them. In addition, nearly half, 49%, thought that interest rates offered were high in comparison to standard BTL rates.

According to FIBA executive chairman, Adam Tyler, the interest in the webinars had been overwhelming.

He said, “It was a fantastic turnout, given that the timing was a regular 2pm on some very sunny Friday afternoons. There were nearly 1000 brokers who’d signed up for the series and 300 for a single session, eager to learn more about taxation in the BTL industry. The webinar series as a whole received record-breaking attendances for every session, and even with one on a Friday afternoon before a bank holiday weekend! A staggering difference to the pre-Covid world.

Of course, we were fortunate to have Roger as our speaker but the overall member support for the webinars was amazing. Of course, the view of the future was mixed. 38% of attendees felt the BTL market would increase, 17% felt it would decrease and 45% felt it would remain the same.”

Adam added, “We feel our webinar series has significantly supported attendees. A pleasing 87% stated that they felt more confident in dealing with landlords and the challenges posed by the BTL market. 71% went on to say they would be actively looking to increase the number of landlords they supported over the next twelve months.

In conclusion, confidence in the BTL market among brokers remains strong and offers significant potential for growth in the future. Some advisers are hesitant about market growth in the short term, but all appreciated that there is a need to add value, knowledge and professionalism to their relationships with landlords in order to be successful in growing this sector in their business in the future.”

June 19, 2020

Highly experienced operators purchase Stepps Pharmacy

Specialist commercial finance broker, Christie Finance, has supported BGR Healthcare Limited, represented by husband and wife Ron and Lynne Badger, to purchase Stepps Pharmacy, a long established community pharmacy based in Stepps on the outskirts of Glasgow. The business was sold by our colleagues at Christie & Co.

Stepps Pharmacy is a highly profitable unopposed business located on the main road in Stepps town centre, ideally situated close to two GP practices, currently dispensing circa 6,500 monthly NHS items at an average value of £12.36. The previous owner, Eddie Ceresa, has managed the pharmacy since 1973 alongside his daughter, and has decided to sell the business in order to retire.

The pharmacy has been sold to Ron and Lynne Badger who are well established in the sector. Ron was previously a joint owner of three pharmacies in central and east Scotland: Jedburgh Pharmacy, Callendar Pharmacy and Roslin Pharmacy. In 2017, Ron relinquished joint control of the Jedburgh and Callendar branches to become sole owner of Roslin Pharmacy. Lynne worked with Boots Pharmacies for several years before joining her husband as the second pharmacist at Roslin in 2017. The couple identified Stepps Pharmacy as an ideal opportunity to re-enter the market and were successful in securing the business following a competitive bidding process.

The couple have a great vision for the business and have already installed a new 24/7 dispensing vending machine at the side of the building to make it more convenient for customers to collect prescriptions. A new dispensing robot will also be installed which has previously been a hit with the local community in their other pharmacies. Commenting on their new acquisition, Ron said, “Having been with my existing bank for over 12 years and buying three businesses during this time, I approached Craig at Christie Finance to get a comparison on new lending packages. He was able to secure several offers all at a higher LTV and lower rates than my incumbent lender. The whole process ran smoothly form start to finish, despite several delays with completion dates, and we are now supported by a bank who is keen to support the growth of my company. As well as securing competitive terms, Craig simplified and steered the whole lending process throughout.”

Craig Dickson, director at Christie Finance, comments, “The pharmacy has recently relocated to larger premises albeit on the same street as the previous shop. Ron and Lynne have refurbished and fitted out the property to a high standard and have exciting growth plans for the business, which I’ve no doubt will be well received by the local community and be a great success. I wish them the best of luck in taking the business forward.”

June 19, 2020

Shawbrook Bank boosts its property finance division with two key appointments

Specialist lender, Shawbrook Bank, has enhanced its Property Finance division by expanding its product and proposition team with the announcement of two key appointments.

Darrell Walker has been named head of product development & proposition and will oversee the division’s property lines as well as its development of the bank’s product strategy as a specialist lender.

He will be supported by Brad McMillan, who will take on the role as senior product development and proposition manager.

Both appointments come amid Covid-19 as Shawbrook looks to enhance relationships with its broker panel and customer base.

Emma Cox, sales director at Shawbrook Bank, is excited by both appointments and believes they will help the division enhance its product portfolio in line with the changing requirements of customers.

She said: “Even in these uncertain times, we are committed to continually improving and investing in our proposition to continue to support our brokers and customers – and this includes expanding our expert teams with the right talent at the right time.

“We are delighted to welcome both Darrell and Brad to the Shawbrook family and we are really looking forward to seeing both of their contributions in evolving our product propositions for both our broker partners and customers.”

Mr. Walker brings a wealth of knowledge to the role with more than 20 years’ experience in the specialist lending industry. In his career, he has held senior positions within the likes of OneSavings Bank, Legal & General and Lloyds Banking Group.

Mr. McMillan has enjoyed a 17-year career across the specialist lending industry with his most recent stint as a key member of the product team at OneSavings Bank, where he was responsible for product development. He has also enjoyed roles at both Royal Bank of Scotland (RBS) and Cheltenham & Gloucester.

Shawbrook’s Property Finance division specialises in buy-to-let, bridging finance, commercial investment and second charge mortgage products predominantly through its UK-wide network of specialist, knowledgeable and experienced broker partners.

Its products are aimed at serving professional landlords and property traders in residential and commercial asset classes, as well as personal customers through its second charge mortgages.

Mr. Walker said: “Shawbrook has held a great reputation in the market over a long period and is also well respected across the broker community as well as throughout our customer base.

“I am looking forward to working with some great people, helping to guide and influence a product proposition that our brokers and customers can really get behind during both the tough times and the good, as well as being able to contribute to the journey we are all on together.”

Mr. McMillan said: “I am really excited to be joining such a fantastic and ambitious team.

“Shawbrook’s Property Finance division has played a vital role in the success of the bank in recent years and is filled with talented and innovative individuals who share the same passion and commitment to bettering the experience of their customers and brokers.

“Shawbrook has shown a commitment to its customers and brokers continuously through these uncertain times. I am both excited and delighted to be able to now play my part in shaping our product proposition as we look to support them even further moving forward.”

June 18, 2020

Co-living developer secures £6.4m funding deal

Funding of £6.4m has been secured by The Studios24 – the first company to deliver a major co-living development in the Midlands – it was announced yesterday.

Cynergy Bank has agreed the refinance package for the London-based property company’s £12.5m residential development in Wolverhampton.

The Studios24 has transformed a dilapidated 12-storey office building into one of the UK’s leading co-living developments. The £12.5m project, at Birch Street, recently reached practical completion and can accommodate more than 200 residents.

Barry Glantz, managing director of The Studios24, said: “To have secured a £6.4m loan from Cynergy Bank, while the UK is experiencing very difficult economic circumstances, is a major vote of confidence in our co-living concept.

“We have been discussing the deal with Cynergy Bank over the course of the last six months and we have been able to strike a very good long-term deal. One of the many things that impressed them was the demographic at The Studios24. Of all our current residents, only 10 are students and they are post-graduates. The rest are working in sectors such as healthcare, construction, education, human resources, and technology.”

He added: “James Herron and Simon Gunnell, of Cynergy, really believe in the project. They came to the development to see what we have created, and liked what they saw. We believe this could be the first of many projects they may support, and they are keen to provide funding for our next venture. I am now actively looking for potential development sites across the West Midlands.”

Cynergy Bank is a specialist bank serving the blended financial needs of business owners, property entrepreneurs and family businesses. It has expanded its reach with offices in London, Birmingham, Bristol, Manchester, Redhill and Edinburgh.

Simon Gunnell, relationship director at Cynergy Bank said: “Cynergy Bank is delighted to support Barry and all at The Studios24 on this project. The concept is providing a viable solution for residents and it has created a superb co-living environment which has attracted residents from a wide and varied demographic. We pride ourselves on working with our clients to understand their business needs and aspirations. The Cynergy Bank model uses local, skilled relationship managers that understand the markets where we operate, who can quickly learn our client’s needs and deliver certainty as speed. We look forward to supporting Barry and wish him every success as he looks to roll out this model across the Midlands”.

The Studios24, provides residents with en-suite studios, arranged as apartments, with shared facilities including kitchens, working and relaxation areas, a café and bar, gym, laundry and high speed internet.

Co-living is a form of housing that combines private living space with shared communal facilities and is designed to encourage communal interaction and build community. At The Studios24, residents have their own en-suite studios with shared kitchen and dining facilities. Rent includes energy bills, cleaning, council tax, superfast broadband, access to a gym, fitness studio, café and bar, and a range of social events for residents and guests. For more information visit www.thestudios24.co.uk.

June 18, 2020

Assetz Capital surpasses Seedrs fund raising target after just one week

Assetz Capital has already exceeded its £500k minimum Seedrs fundraising target and now aims to secure matched investment from the government’s new Future Fund to double up the investment.

The peer-to-peer marketplace lender set a minimum overall target, including the Future Fund matched investment, of £1m and has already exceeded that just a week after the fundraise went live. The funding round has a maximum of 27 days remaining to run before closing and an overall investment of up to £2m is expected.

The government’s Future Fund enables innovative and high-growth British businesses to apply for a convertible loan of between £125,000 and £5m, which is matched against private investment. The convertible loan, alongside an equivalent investment from private investors, can then convert into an equity investment in the company within 36 months.

Assetz Capital was accredited as a lender under the government’s Coronavirus Business Interruption Loan Scheme (CBILS) in May 2020 and will use the capital to support its CBILs delivery.

Stuart Law, CEO at Assetz Capital, said: “We are again delighted by the response from our investors to this fourth funding round through Seedrs. We would also be proud to bring the UK government into our shareholder base through the Future Fund.

“This funding round, in the middle of the pandemic, is another endorsement of both our model and our approach during an incredibly difficult economic period for many businesses. We look forward to commencing CBILS lending as soon as possible this month to support UK business and housebuilders.”

June 18, 2020

Hope Capital now able to lend on a range of valuation types

Hope Capital is now accepting a range of valuation types. Having previously required a full valuation on residential properties, in many circumstances they are now able to lend based on AVMs, drive-bys or desktop valuations.

These new valuation options now make borrowing more accessible for customers, particularly in circumstances where speed is of utmost priority. Both AVMs and desktop valuations are able to be completed in a matter of hours and provide enough accuracy to be able to progress with a loan application.

These valuation types have a far lower associated cost than a full valuation, which can help in meeting the customer’s needs and make a loan more affordable and suitable.

By introducing these new valuation types, Hope Capital is future-proofing itself. In scenarios whereby valuers are unable to enter properties, or there is huge demand on valuers, these alternative valuation types enable business continuity and allow borrowers to push forward with their plans.

These new options for valuations are part of the new 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. Full details on the Custom Collection can be found on the Hope Capital website.

Gary Bailey, managing director of Hope Capital, said: “It’s fantastic that we’re now able to accept a far broader range of valuation types. Often a full valuation can take considerably more time than it may have previously. Particularly given the current circumstances its now more important than ever that we’re flexible and can operate swiftly.

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

 

June 17, 2020

United Trust Bank now offering CBILS to SME house builders, developers and property investors

UTB has been approved for accreditation by the British Business Bank as a lender for the Government backed Coronavirus Business Interruption Loan Scheme (CBILS). UTB CBILS facilities are designed specifically to assist SME house builders, developers and investors whose businesses have been adversely impacted by the Coronavirus pandemic. The Bank will also begin offering CBILS Asset Finance facilities later this month.

CBILS, delivered through British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5m to eligible smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

Under CBILS, UTB can now offer the following new facilities and further details can be found on UTB’s website here: https://www.utbank.co.uk/lending/cbils/

  1. UTB CBILS Junior Debt Term Loans
  2. UTB CBILS Sales Period Finance Term Loans
  3. UTB CBILS Investment Finance Term Loans

The UTB CBILS facilities are available to house builders, developers and property investors. These loans can share security with the existing UTB product suite, thereby increasing facilities to £25m. These can be used for property development, investment or bridging facilities across residential, commercial and mixed use schemes.

In the absence of the CBILS, the SMEs for whom these facilities are designed would ordinarily have difficulty raising such finance due to the impacts of Covid-19 as they may fall outside of UTB’s and other funders’ normal credit risk lending appetite. With all products the borrower remains responsible for the repayment of the full value of any facility supported by CBILS.

Upon launching the suite of UTB CBILS products, Noel Meredith, executive director of United Trust Bank, commented:

“The Covid-19 pandemic has had a profound effect on the UK economy and its businesses. Many SME house builders and developers are suffering from the consequences though these may take time to become fully apparent. Construction programmes have extended, supply chains are disrupted, sales markets are uncertain in both in terms of transaction volumes and value. All of these create additional costs and funding needs at a time when funding markets are disrupted and lenders are being cautious due to overwhelming uncertainty.

United Trust Bank is experienced through the cycle lender with a deep understanding of the challenges faced by SME house builders, developers and property investors and what they need from a specialist finance partner in uncertain times. These CBILS facilities are designed to enable new and existing UTB customers to keep building, developing and investing in property across England and Wales.

“The UK is facing deep economic uncertainty, but we must continue to tackle the nation’s growing housing shortage. SME house builders, developers and investors have a significant and important role to play in that endeavour and United Trust Bank will continue to support them with innovative funding solutions.”

June 17, 2020

LendInvest joins Sesame and PMS lender panel to further distribute buy-to-let and bridging offering

LendInvest, the UK’s leading platform for property finance, has joined Sesame and PMS’s lender panel to ramp up distribution of its buy-to-let and ridging products.

The network and mortgage club’s member firms will now be able to register with LendInvest and access its full range of buy-to-let and HMO mortgage products as well as unregulated bridging loans.

Sesame Network and PMS Mortgage Club are part of Sesame Bankhall Group, which is one of the UK’s largest distributors of mortgages and ancillary services, providing its members with access to exclusive loan products.

LendInvest’s two-year fixed rates currently start from 2.99%, and five-year fixed rates from 3.39%. ICR assessment rate is 5% across all products, with the exception of the 5 year fixed interest 70% LTV product which sits at 4%.

The maximum loan size for small HMO’s and MUFB’s is currently £750,000.

LendInvest offers a full suite of bridging loans at competitive rates, lending against residential, commercial and land. Rates for this product range start at 0.55% and run up to a maximum of 75% LTV.

Andy Virgo, director for buy-to-let at LendInvest, commented: “Amidst an uncertain time for property professionals around the country, it’s great to be announcing another partnership with brands as large and established as PMS and Sesame.

“Now more than ever is it key to be offering the finance that borrowers need to get their businesses back on track, and as the housing market continues to show more positive signs of movement, we’re delighted to be reaching more customers with the aid of such an experienced distributor.”

Stephanie Charman, specialist lending relationship manager for Sesame and PMS added: “As we work through these uncertain times I am delighted we have been able to expand our lender panel, adding LendInvest to our buy-to-let and bridging offering. LendInvest has recently launched a new revised product range, providing specialist buy-to-let and bridging product options. A more expansive product range is good news for our members and their landlord clients, along with the wider buy-to-let market.”

June 16, 2020

Finance For Enterprise and NPIF helps modular buildings specialist

Owners of a Hornsea-based construction company which specialises in the installation of modular buildings are cooking up plans to nurture entrepreneurial talent in the Yorkshire coastal town, after securing a £65,000 CBILS-backed loan from Finance for Enterprise and NPIF – BEF & FFE Microfinance, which is part of the Northern Powerhouse Investment Fund.

The loan will provide owners of Frontier Modular Services, Richard Pooley and Lindsey Nicklin, with the vital financial support needed to transform a forgotten and unloved building into a new headquarters for the fast-growing business. The building will also become a new business hub within Hornsea.

Richard and Linsdsey launched Frontier Modular services, which specialises in the installation and fit out of modular buildings, in 2017. It has since enjoyed significant year-on-year growth and works on behalf of a number of well-known manufacturers in the industry.

Over the past three years the company’s workforce has grown to 20 site operatives, who work on a diverse range of installation projects, including schools, hospitals and immigration centres. Prior to the Covid-19 pandemic, the company was on course to achieve a seven-figure turnover.

After setting their sights on further growth, the duo began scouring the local property market to find suitable premises for their fast-growing business. Their dream property proved to be a former bake house. When the unique property went under the hammer, Lindsey and Richard immediately set about developing plans to transform the building into a new headquarters for their burgeoning business.

Plans for the opening of the hub in Spring were put on hold as a result of the Covid-19 pandemic and the firm needed funding to secure the future of the project.

After exploring different lending options, Lindsey approached Finance For Enterprise for help. Working with an experienced Investment Manager, the company was able to secure an investment of £65,000 in the form of a CBILS backed loan to upgrade the Old Bake House. The Finance For Enterprise investment comprised of funds from a combination of its own capital and from NPIF – BEF & FFE Microfinance, of which Finance For Enterprise acts as joint fund manager.

Prior to joining Frontier Modular, Lindsey had headed up the University of Hull’s Enterprise Centre, where she used her entrepreneurial expertise to support start-up businesses. Drawing on her previous experience, she spotted an opportunity to support other new entrepreneurs by transforming surplus space within the three-storey building into a business hub to help new entrepreneurs to develop and explore their business ideas.

Since securing the CBILS funding, remedial works within the Old Bake House have started. The building’s dilapidated electrics have been upgraded, new data connections installed, and the new headquarters and business hub is on course to open its doors for the first time in October.

In addition to supporting Richard in overseeing the day-to-day operations within Frontier Modular, Lindsey has also spent time pioneering a new recruitment business and outsourcing company, which will also be based in the Old Bake House.

Lindsey Nicklin, director, Frontier Modular said:

“The Old Bake House offered everything we were looking for in a property. We felt it would provide the essential office space to support our growth plans, as well as helping others to take the first steps on their own business journey.

“I’m passionate about helping individuals to be successful in business. Yorkshire’s coastal communities are often overlooked when it comes to helping people interested in running their own businesses.

“We recognised additional funding would be required to realise the potential of our new premises, and after exploring different options we approached Finance For Enterprise for help. We had originally planned to launch in the spring, but with delays to the project as a result of the Covid-19 pandemic, the loan has proved to invaluable, enabling us to continue to invest in our plans to upgrade the building.

“The support we’ve received from Finance For Enterprise will not only help us to improve on Frontier Modular’s success to date, especially during the uncertain times caused by the current pandemic, but will enable us to support new entrepreneurs, which can only be a positive thing to the local economy.

“We knew when we purchased the building that some upgrading work would be required. We had approached a number of lenders for help. Finance For Enterprise replied quickly and I was very impressed by the support and guidance Jane provided during the application process.”

Jane Cusse, investment manager, Finance For Enterprise said:

“Frontier Modular Services is a business which has enjoyed significant growth since its inception. Like many businesses they were forced to reassess their plans, following the Covid-19 pandemic. The CBILS-backed loan has helped them to secure the vital cashflow needed to support their business.

“The Coronavirus Business Interruption Loan Scheme is a vital lifeline for many businesses which have been affected by the Covid-19 crisis and as a delivery partner to the scheme, we were able to help Frontier Modular take the vital steps needed to protect their business during an uncertain economic time.”

Grant Peggie, director at the British Business Bank said:

“Our fund managers have been working tirelessly throughout the pandemic to provide vital support to northern businesses that are facing financial difficulties. We are proud to work with Finance For Enterprise to help firms such as Frontier Modular Services which make a real difference to the regional economy. I would encourage any business which has been adversely impacted by the Covid-19 pandemic to get in touch with our fund managers and see what support is available in these difficult times.”

Finance For Enterprise provides a range of tailored loans up to £250,000, aimed at supporting SMEs throughout Yorkshire and the North Midlands. The company is a delivery partner for the British Business Bank-backed Coronavirus Business Interruption Loan Scheme and acts as fund manager for the Northern Powerhouse Investment Fund and Start Up Loans UK.

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

June 16, 2020

The market reanimates: vendors return with higher prices

Vendors are re-entering the market and, most remarkably, they are pricing higher, according to Home.co.uk’s Asking Price Index for June.

Counter to the doom and gloom that has dominated the media recently, vendors who have been brave enough to place their properties on the market are showing considerable confidence and less caution than might be expected.

However, considering the overall lack of supply (there are only around 40% of the new listings one might expect for the month of May), their bullishness would seem justified.

Supply was already low a year ago, according to longer-term trends, and the mere trickle of properties entering the market is highly unlikely to surpass demand. Moreover, it is clear that there is considerable pent-up demand post-lockdown, so much so that several major lenders have temporarily withdrawn 90% LTV products citing overwhelming demand, especially from first-time buyers.

The fact is that the market is currently in a state of transition and the new normal is yet to be defined. We anticipate that it will take two to three months for the market to find its new post-pandemic equilibrium.

Previously, we observed that the UK property market began the year with a plethora of encouraging activity and post-correction regions showed considerable potential for price growth. The optimistic scenario would be a return to this positive trend, although demand will certainly be tempered to some degree by a mortgage credit bottleneck and the economic damage sustained by the lockdown cannot be ignored. The key question remains ‘How vigorous will be the rebound be?’ Indications thus far suggest the market is taking off with an unprecedented sense of urgency.

What is blatantly clear is that the situation could have been a whole lot worse. The annualised mix-adjusted average price growth across England and Wales currently stands at +0.8%; in June 2019, the annualised rate of increase of home prices was -0.6%.

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