- 23rd June 2020
- Posted by: DMM
- Category: Development Finance
There are a wide range of lenders providing Northern Ireland Property Development Finance and the following is an outline of typical lending terms. Such terms are always changing and so a search via our online platform is always recommended but these details will provide a useful guide.
According to Northern Ireland Statistics and Research Agency (NISRA) House Price Index (May 2020) there were 4,746 property transactions in Q1 2020 in Northern Ireland. Property development finance will, undoubtably, be affected by the impact of COVID19 and borrowers may expect to see revision to lender criteria.
Northern Ireland property development loan terms and lending appetite will vary from lender to lender and facility amounts can range from as little as £30,000 to some lenders providing up to £35,000,000.
Nothern Ireland Property Development Finance
Senior development and Stretch Typical Terms:
- Available facilities – £30,000 to £35,000,000
- Terms – From 1 month to 60 months
- Rates – From 5% to 14% per annum. Some lenders do compound interest rates but typically interest will be simple and rolled up
- Arrangement fee – 1% – 2% in most cases
- Exit fee – 1% – 2% in most cases
- Loan to Cost (LTC) – Up to 100% but typically 85%
- Loan to GDV (LTGDV) – 60 – 75%
Northern Ireland property development finance is available for a wide range of development types that may include residential, commercial, mixed schemes, hotels, HMO’s, purpose built student accommodation and permitted development.
Northern Ireland property development finance is not limited to senior debt as there are a number of specialist lenders also providing mezzanine finance.
Typical mezzanine finance terms:
- Available facilities – £100,000 – £1,500,000
- Terms – From 6 months to 24 months
- Rates – From typically from 14% per annum
- Arrangement fee – 1% – 1.5%
- Exit fee – 1% – 2%
- Loan to Cost (LTC) – Up to 90% but typically 75%
- Loan to GDV (LTGDV) – 75%
Bridge funding in Northern Ireland is also available with facilities up to £20,000,000 possible. Rates will start from 0.65%pm and up to 75% LTV will be considered.