How we operate:
We discuss with the client the nature of the proposal, obtain the relevant scheme details and ascertain the level of funding that will be required. With most residential schemes this involves raising between 70% and 100% of all costs plus interest roll up. The information that we require is summarised in the brief questionnaire that can be found under the heading "Project Details". We will arrange to visit the client and view the site if that is helpful to an understanding of the proposal.
Within a day or two we expect to prepare a presentation appraisal and then obtain funding quotes from sources selected to suit the client’s needs. There is no cost to the client in reaching this stage. An indicative offer is normally made by a lender within a few 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.Fees:
The lender’s standard arrangement fee for an agreed and accepted facility is usually 1% of the loan amount.
As completion of the project is achieved and sales of units commence the lender will require exit fees or, in the case of 100% funding, a profit share. The exact terms will be set out in the formal facility letter to be agreed by the client.
For 100% funding the profit share will normally range between 30% and 50% of the profit figure.
Our own fee to the client will be a quarter of one percent of the loan amount that is agreed and is payable at first drawdown of the facility. For example on a loan of £1,000,000 our fee to the client is £2,500. The Lender to whom we have introduced the deal will also normally pay us an introduction fee which is a part of their standard arrangement fee.