Close risk warning

As with most forms of investment, peer-to-peer lending carries a degree of risk to your capital; in this case, if the borrower is unable to repay their loan. At Assetz Capital, we seek to reduce this risk to our investors by taking asset security on every loan, with the added benefit of a discretionary Provision Fund for some of our investment accounts. Investment Account target interest rates should be considered along with the relevant Investment Account expected defaults & losses information. Past performance does not guarantee future performance. We recommend that prospective lenders read the Key Investor Information pages before investing.

Development Finance

0161 482 7773

If you are looking to raise business finance, have a client looking to raise business finance, or have any other question or enquiry, please call our Business Development Team on 0161 482 7773 who will be delighted to help you. Alternatively please send an email to borrow@assetzcapital.co.uk if you are looking for your own business or introduce@assetzcapital.co.uk for a client's business.

If you prefer to contact your local representative directly, please use the Find Your Local Relationship Director section.

 

Borrowing enquiry   Introducing enquiry

About Development Finance

Development finance is easy when it’s easy but in many cases we see there are quirks that make the project expensive or difficult to fund elsewhere, even pushing some developers towards using expensive bridging. Assetz Capital has one of the most experienced property development lending teams in the industry with decades of experience over many cycles and this allows us to understand each transaction and if difficult, often help find a competitive solution. Interest can be rolled or paid monthly, flexible repayment dates can be agreed to suit sales timelines, exit fees are calculated on facility not GDV and title indemnity insurance can be used. Monthly drawdown loans with interest charged on the balance.

Fast Facts

Product Benefits

Introducer Benefits

  • A dedicated Relationship Director will work with you to maximise your understanding of our great range of flexible finance products

  • We can supply mailers, term sheets and case studies ready to send out to your clients, co-branded if required

  • We pay procuration fees to introducers where this does not create a conflict of interest

  • One relationship, lots of products to suit different clients

Indicative Terms Sheet

Each facility will be structured and priced on its own merits. We will consider terms outside the above LTC/LTGDV and maximum loan guidelines where the circumstances of the loan warrant it.

Loan Type Senior Debt Mezzanine Debt Stretched Senior
(Combination of the two)
Minimum Loan Amount £500,000
Maximum Loan Amount £9m (On a staged drawdown basis)
Maximum LTGDV 65% 75% 75%
Loan Period Typically 12-24 months
Arrangement Fee Minimum fee of 2%
Exit Fee Minimum fee of 1% of facility amount
Interest Rate
(Rate dependent on risk and loan size)
From 7.9% pa From 19.9% pa From 12.9% pa

In Detail

    • First or second charge security taken over acceptable properties in mainland UK
    • Where the borrower is a Limited Company, additional security will be required in the form of a debenture over the company, a charge over the shares of the borrower and Personal Guarantees from all Directors/Shareholders
    • Deed of Priority required from senior funder on mezzanine debt
    • Interest accrues on the drawn balance on a daily basis subject to minimum charging period (specific to each loan)
    • Applicants must have prior experience in similar projects
    • For indicative terms to be issued, we will need background and experience of the borrower, project synopsis including planning, contract procurement, timetable and full details of the site, cash flow/financial appraisal, preferably in Excel format and details of broker fees
    • Details of a viable exit will be required
    • We will lend to an individual or Limited Company (including SPVs) and are able to consider overseas jurisdictions owning UK properties, subject to suitable foreign legal opinions
    • Broker fees will be added to the loan where the LTC/LTGDV allows and paid on first drawdown. Responsibility for advising the Borrower on structure and pricing will be solely that of the broker
    • Lending will be based on the market value (180 day), however, we reserve the right to lend based on the 90 day value should we deem it necessary
    • Cash equity to be injected into the project before loan advances are made
    • We will look to effect payments direct to the approved creditor organisations (builders/professionals etc.) where possible
    • The borrower is responsible for all professional fees and an undertaking/cover for legal and other professional costs
    • Applicants for the mezzanine or stretched debt product must have a minimum net A&L position of £1m
    • Title Insurance may be required on loans where they fit the relevant criteria and the fee for this will be included in the legal cost
    • Commercial properties considered (closed ended)
    • Please note: Assetz Capital does not provide FCA regulated mortgage contracts or regulated Consumer Credit loans
Download image

Brochure Download

Click on the link below to download a pdf version of the loan details, with the product benefits, indicative terms and a case study all included.

Gower Homes

Assetz Capital helped Michael Forgrave of Gower Homes fund the development of 47 new homes in Wrexham.

View case study
Gower Homes