Loan Amount |
Loan Amount The majority of lending we have undertaken is £500,000 - £30m per
borrower. Larger exposures will be considered on their selected merits.
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LTV |
Up to 80%, with selected cases up to 85% subject to
approval.
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Sectors |
Retail
Prime & Secondary retail
Shopping centres
Retail parks
Retail warehouses
Office
Large and small offices
Business parks
Warehouses & Distribution
Leisure
Industrial
Units
Estates
Factories
Residential Investment
Educational
Housing Association/Social Housing
Off-shore lending
Any other sectors are considered on their own merits
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Tenure |
The tenure of acceptable properties will be freehold, leasehold or feudal in Scotland.
For leasehold properties, as a general guideline we would anticipate a minimum of 35 years unexpired upon repayment of the advance. However, each proposition will be considered on its merits, certainly in relation to the Central London area.
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Residual debt |
In line with the commercial lending market the Society will consider proposals where full repayment of the loan is not achieved by the end of the maturity date of the loan, leaving a residual debt. This is subject to our satisfaction of exit strategy.
Residual debt exposures will be considered on an individual basis, with consideration given to a variety of factors, i.e.
- Property quality.
- Term of exposure.
- Stability of value.
- Lease terms and covenant strength.
- Income stream.
- Ultimate repayment/exit strategy and likelihood of success.
In cases of residual debt exposure, upon expiry of the term, the borrower will be offered one of three repayment options:
1. Ongoing basis of support to be agreed with the Society;
2. Refinancing with alternative lender;
Bullet repayment via either asset sale or cash lump sum reduction.
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