Product
Guide
Short term property finance
Welcome
Welcome to the LendInvest Product Guide. Inside you’ll find our full range of products including; development loans,
bridging loans and buy-to-let loans. Aditionally you’ll find a detailed explanation of our criteria.
OUR PRODUCTS
Bridging Loan
Development
Loan
3 Year Buy-To-Let
Loan
Loans from £100k to
£7.5 million
Loans from £250k to
£10 million
Loans from £100k to
£2.5 million
LTV up to 75%
Loan to GDV up to 65%
LTV up to 75%
Terms up to 12 months
Terms up to 24 months
Terms up to 36 months
Often used for:
Often used for:
Often used for:
• Buying property at
auction
• Short term cash flow
requirements
• Refurbishments
• Extensions
Key Pages
Bridging product overview - pg.4
Residential Tier 1 - pg.5
Residential Tier 2 - pg.6
Commercial - pg.7
Criteria - pg.10 to 12
• Property development
• Ground up builds
Key Pages
Development - pg.8
Criteria - pg.10 to 12
• Portfolio building
• Tenant and refinance
• Hold pending planning gain
Key Pages
3 Year Buy-To-Let - pg.9
Criteria - pg.10 to 12
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
2
What we do
What we won’t do
• Unregulated loans
• Regulated loans for owner
occupied property
• Lend on property in England
and Wales
• Consumer buy-to-let loans
• Bridging Finance
• Lend on property in Scotland
and Northern Ireland
• Development Finance
• 3 Year Buy-To-Let
• All property types considered
MEET YOUR DEAL TEAM
Our Business Development Managers are here to help, from enquiry to completion.
The team can provide assistance on all our products.
Gary Clark
Magnus-Duke Dadzie
[email protected]
+44 (0)755 712 2992
+44 (0)20 7118 9868
[email protected]
+44 (0)795 632 9292
+44 (0)20 7118 9869
Alex Kyriacou
[email protected]
+44 (0)772 583 8546
+44 (0)20 7118 6811
Michael Minnie
[email protected]
+44 (0)790 085 6380
+44 (0)20 7118 9871
Justin Trowse
[email protected]
+44 (0)783 477 3977
+44 (0)20 3846 6825
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
3
Bridging product overview
The interest rate you receive on a bridging loan will depend on the nature of the security that the loan
is secured against and the status of the borrower.
Our loans are split into three broad categories as you’ll see in the explanation below.
RESIDENTIAL BRIDGING TIER 1
If you have a residential property that fits the requirements, Tier 1 offers our most competitive interest
rates. The trade off for these lower rates is a stricter set of requirements, that both the property and
borrower must meet. Turn to page 5 to see if your property fits and pages 10-12 to confirm that the borrower(s) meets our lending criteria.
RESIDENTIAL BRIDGING TIER 2
If you have a residential property that doesn’t match our Tier 1 criteria, it’s likely to be suitable for our
Tier 2 product. Our Residential Bridging Tier 2 product allows for larger loans, more diverse property
types and non-UK borrowers. Turn to page 6 to see if your property fits and pages 10-12 to confirm that
the borrower(s) meets our lending criteria.
COMMERCIAL BRIDGING
If your security property is not purely residential, you should see our Commercial Bridging page. Here’
you’ll find loan details for semi-commercial and commercial properties, as well as land. Turn to page 7 to
see if your property fits and pages 10-12 to confirm that the borrower(s) meets our lending criteria.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
4
Residential Bridging
Tier 1
Short-term loans for residential properties located in England and Wales that meet the criteria below.
Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in
the property.
DESCRIPTION
Max loan size
£3,000,000
Loan term
From 1 to 12 months
Min loan size
£100,000
Arrangement fee*
2%
Max loan to value
75%
Early redemption fee
None
Valuation fees
Market rate
Legal fees
Market rate
*Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.
LTV
Monthly interest rates from
≤40%
0.65%
≤50%
0.70%
≤60%
0.80%
≤65%
0.85%
≤70%
0.90%
≤75%
0.95%
OUR CRITERIA
Accepted
Not accepted
Property
Residential
HMOs, holiday lets, non-standard
construction properties
Refurbishment
Light refurbishment
Heavy refurbishment
Charge
1st charge
2nd charge
Tenure
Freehold, leasehold with 80+ years
left on lease
Leasehold less than 80 years
Applicant
UK residents and UK companies.
Non-UK tax residents and non-UK
companies.
Outside
our
criteria?
See
Bridging
Tier
2.
Outside
ofof
our
criteria?
Get
in Residential
touch to discuss
your
case.
020 7118 1133
[email protected]
lendinvest.com/borrow
5
Residential Bridging
Tier 2
Short-term loans for residential properties located in England and Wales that meet the criteria below.
Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in
the property.
DESCRIPTION
Max loan size
£7,500,000
Loan term
From 1 to 12 months
Min loan size
£100,000
Arrangement fee*
2%
Max loan to value
75%
Early redemption fee
None
Valuation fees
Market rate
Legal fees
Market rate
*Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.
LTV
Monthly interest
≤40%
0.70% - 0.95%
≤50%
0.75% - 1.00%
≤60%
0.85% - 1.10%
≤65%
0.90% - 1.15%
≤70%
0.95% - 1.20%
≤75%
0.99% - 1.25%
OUR CRITERIA
Accepted
Property
Residential, HMOs, non-standard construction properties
Refurbishment
Light refurbishment, heavy refurbishment and minor development: Structural, conversion
or extension work that requires planning permission or building regulation approval.
Charge
1st charge and 2nd charge
Tenure
Freehold and leasehold with 60+ years left on lease
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
6
Commercial Bridging
Short-term property loans for semi-commercial, commercial and land, located in England and Wales that meet the
criteria below.
Suitable for investment properties only. The borrower or borrower’s family cannot live or intend to live in the property.
DESCRIPTION
Max loan size
£7,500,000
Loan term
From 1 to 12 months
Min loan size
£100,000
Arrangement fee*
2%
Max loan to value
75%
Early redemption fee
None
Valuation fees
Market rate
Legal fees
Market rate
*Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.
Monthly interest rates from
LTV
Semi-commercial
Commercial
Land
≤40%
0.80%
1.00%
1.00%
≤50%
0.85%
1.05%
1.05%
≤60%
0.90%
1.10%
1.15%
≤65%
0.99%
1.15%
1.25%
≤70%
1.05%
1.20%
1.30%
≤75%
1.10%
1.25%
1.35%
OUR CRITERIA
Accepted
Property
Semi-commercial, commercial, land
Refurbishment
Light refurbishment, heavy refurbishment and minor development: Structural, conversion
or extension work that requires planning permission or building regulation approval.
Charge
1st charge and 2nd charge
Tenure
Freehold and leasehold with 60+ years left on lease
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
7
Development
Unregulated loans for residential and semi-commercial projects, located in England and Wales. Borrower
must have previous experience of similar projects.
DESCRIPTION
Annual interest rate
11%
Max loan size
£10,000,000
Loan term
From 1 to 24 months
Min loan size
£250,000
Arrangement fee**
2%
Max loan to value
(land)
65% (including interest)
Exit fee
None
Max loan to GDV
65% (including interest)
Max single unit GDV
£3,000,000
Max LTC*
90%
Max per square ft GDV
£1,500
Valuation fees
Market rate
Legal fees
Market rate
*Loan to cost is calculated as the total of purchase cost plus development costs. We can therefore provide 100% of the development cost in most cases.
**Arrangement fee includes a 1% procuration fee. LendInvest has a flexible procuration fee policy; ask our BDMs about the rates that could apply.
OUR CRITERIA
Accepted
Applicant experience
Demonstrate experience of similar projects.
Charge
1st charge
Tenure
Freehold, leasehold with more than 60 years remaining.
Drawdown
Based on works completed with monitoring surveyor sign off.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
8
3 Year Buy-To-Let
Unregulated loans for tenanted residential properties, located in England.
DESCRIPTION
Max loan size
£2,500,000
Loan term
3 years
Min loan size
£100,000
Arrangement fee
2.5%
Year 1 - 3%
Max loan to value
75%
Early redemption fee
Year 2 - 2%
Year 3 - 1%
Valuation fees
Market rate
Legal fees
Market rate
LTV
Annual interest rates from
≤65%
6.99% pa with additional 2.00% pa deferred*, or 8.99%
≤75%
7.99% pa with additional 2.00% pa deferred*, or 9.99%
*2% interest per annum is deferred and payable upon redemption of loan, or the loan can be serviced at the higher rate on request.
OUR CRITERIA
Accepted
Property
Residential
Rental coverage
100% and over, unless underwriters agree to rental shortfall being covered by other
income.
Charge
1st charge
Tenure
Freehold, leasehold with more than 60 years remaining.
Considered: Commonhold, leasehold with less than 60 years left on lease, social housing.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
9
Borrower requirements
Individual
Minimum age
21
Maximum age
75 (at end of term)
Max number of applicants
4
Residential status
Resident in the UK for 36 months or more. If not, please get in touch.
For Tier 1 Bridging: Individuals must have resided in the UK for a minimum of
36 months and must currently be UK tax resident.
UK/EEA acceptable. Non-EEA subject to underwriter approval.
Nationality
For Tier 1 Bridging: UK only.
Corporate
Company origin
UK limited companies. Non-UK possible. Please get in touch.
For Tier 1 Bridging: UK companies only.
Max number of applicants
4 (directors/members)
Director’s nationality
UK/EEA acceptable. Non-EEA subject to underwriter approval.
For Tier 1 Bridging: UK only.
Security
Debenture or other fixed and floating security required.
Personal guarantees
UK companies: Full personal gurantee required from all directors and
shareholders holding more than 25% of shares in the company.
Non-UK companies: Full personal guarantees required from the principal or
beneficiary of the company.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
10
General requirements
General requirements
Servicing - Bridging/
Development
Underwriters must be satisfied that the borrower has the means to service
the monthly interest (where interest is not retained). Evidence may be
requested.
The rent as confirmed by the LendInvest valuer will be used to determine the
Servicing - 3 Year Buy-To-Let rental cover is a minimum of 100% of the interest charged at the agreed loan
pay rate.
Exit strategy
Applicants must be able to demonstrate a realistic exit strategy.
Solicitors
LendInvest will instruct its own solicitor to act on its behalf and you will
be liable for their costs. The solicitor acting for you (to be acceptable
to LendInvest) must have at least 3 Solicitors Regulatory Authority (SRA)
approved managers. Please note Licenced Conveyancers are not acceptable.
Valuers
LendInvest will instruct a valuer from its valuation panel to value the security
being offered. You will be required to pay the valuers fee direct to the firm
instructed when requested.
Deposit
On all purchase cases the source of deposit must be disclosed. LendInvest
may request that evidence of the deposit is produced.
Refurbishment
Details of any refurbishment and the related costs must be disclosed as part
of your application. For major refurbishment/development you must supply
details of your previous development experience to support your application.
HMO’s
Properties being refinanced that are operating as a HMO must have all
appropriate licences in place at the time of application. Properties being
purchased with an intention to use as a HMO should have licences in place
as soon as practical after completion.
For Tier 1 Bridging: Not accepted.
Identity verification
Passport or UK driving licence. Non UK residents, please contact us.
Address verification
Utility bill, bank statement or tax demand dated within the last three months.
Non UK residents, please contact us.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
11
Personal Credit Profile
Bankruptcy/IVA
No bankruptcy/IVA in the last 3 years. If bankruptcy/IVA occurred in the last 6
years a full explanation is required.
For Tier 1 Bridging: No bankrupcy.
County Court Judgements
(CCJ)
All CCJs must be satisfied and should not exceed £5,000. If more than one
CCJ is present in the last 6 years the LTV is restricted to 60%. If more than 3
CCJs are present in the last 6 years the case will be declined. An explanation
of any CCJ recorded is required in all cases.
For Tier 1 Bridging: If more than 3 CCJs are present in the last 3 years, case
will be denied.
Mortgage/secured loans
All secured loans should be up to date at the time of application with no
arrears greater than 1 monthly payment in the last 36 months.
Unsecured loans/revolving
credit
Any arrears or defaults in the last 24 months are at the underwriter’s
discretion to disregard.
Criminal convictions
Not permitted unless relating to motoring offences, or at underwriters
discretion.
Corporate Credit Profile
Bankruptcy or liquidation
No bankruptcy or winding up petition in the last 6 years.
County Court Judgements
(CCJ)
No CCJs unless by underwriter discretion.
Outside of our criteria? Get in touch to discuss your case.
020 7118 1133
[email protected]
lendinvest.com/borrow
12