What we do:
Development Finance: Our objective is to arrange development finance for limited company clients relative to either the GDV (end value) or the overall costs for the proposed development.
With 40 years experience in banking and finance we make a careful examination of each development appraisal and work with clients to obtain and present the essential points of information in an appropriate format. This enables our lenders to readily assess the project and appreciate its scope and advantages.
In practice development loans may achieve up to 90% of costs. This will include interest roll-up. Senior debt, stretched senior debt and mezzanine finance are all considered. In a few select cases finance up to 100% may be possible.
Schemes that are particularly attractive at the moment are those where the developer is experienced and the profit margin equates to 20% or more relative to costs.
The size of deals covered is normally in the range of £250,000 to £10,000,000 although we are able to consider loan requirements up to £20m.
How we operate:
We discuss with the client the nature of the proposal, obtain the relevant details and ascertain the level of funding that will be required. We will arrange to visit the client and view a site if that is helpful to an understanding of the proposal.
We will quickly prepare a comprehensive presentation appraisal and approach our funding sources for the appropriate support. There is no cost to the client in reaching this stage. An indicative offer is normally made by the lender within two or three days of receiving our appraisal. Once a formal offer is accepted by the client, the lender will ask for payment of a fee to cover the professional valuation and their legal costs.
As broker, we do not charge any up-front fee. Nor do we seek an arrangement fee in the event we are unsuccessful in sourcing the required funding or if our client decides not to take up the lender's offer. Our fee is often included within the lender's fee structure and is always transparentand openly advised.
ALEXANDER PROPERTY FINANCE.
Phone: 01491 573609.