FREQUENTLY ASKED QUESTIONS

What should my CV include?

 

  • Details of the company: Who you are, who the company is, how long you’ve been running for

  • Previous projects that you’ve carried out with evidence

  • This can include pictures before and after, brief descriptions of what work was done and how it increased the value of the property 

  • Details of the team around you. The Contractor, Project Manager, Quantity Surveyor etc. Show their previous experience and the projects they have worked on in the past

 

What we don’t want

 

  • We don’t require previous employment history and education background, unless they are property related

  • Don’t exaggerate your previous projects - The Lenders will find out! 

 

Why do we ask for a CV?

 

So that the lenders can get a good understanding of previous experiences, history, background in the industry and the scale of projects you’ve carried out. They also like to know about your team and their experiences and background in the industry. This is because 99% of the time, your team will be delivering the project rather than you.

 

What is the process of obtaining a loan? What are the steps involved from start to finish?

 

  • Enquiry submitted to TPFC via the form on the website or Mobile app 

  • A Case manager picks up the enquiry and reviews the provided information to make sure nothing is missing and to gain a full understanding of the deal

  • The Deal is packaged and sent to relevant lenders

  • Lenders will respond with their offer Agreement in Principle (AIP)

  • The Case manager compiles a spreadsheet of all the AIPs that we receive from Lenders, which will be sent for you to review

  • Once you have chosen the lender you wish to proceed with, the case manager will send you the relevant paperwork to complete, these generally include: Application Form, Property Portfolio and Assets and Liabilities Statement. They may also need photographic I.D, proof of address, 3 months worth of bank statements, credit report and a schedule of the proposed works

  • Lender will then get valuation quotes and availability and you then choose who you would like to go with and pay the relevant fee

  • The Valuer will then send a report to the lender for a review and the lender will send you an offer letter if they are happy with the Valuation 

  • Solicitors will then be instructed, you will have to pay fees for your own solicitor as well as the lender’s solicitor. Top Tip: Make sure you choose a solicitor local to you as you will have to go into the solicitor’s office to sign documentation. You also need to use a Solicitor’s Firm with at least 2 SRA Partners

  • The Case Manager will then liaise with you and the Lender to make sure that the legals are completed as quickly and efficiently as possible

  • Once the legals have been completed then the funds will be sent to your solicitor

  • The case will then complete

 

Abbreviations

 

MV - Market Value: How much the property is currently valued at.

BMV - Below Market Value: If the property is being sold for less than the current Market Value.

OMV - Open Market Value: The price at which an asset would trade on the open market

GDV - Gross Development Value: The value of the property after works have been completed.

LTV - Loan to Value: The ratio between the value of the loan you take out and the value of the property as a whole, expressed as a percentage.

LTGDV - Loan to Gross Development Value: The ratio between the value of the loan you take out against the expected value of the property after works, expressed as a percentage.

LTC - Loan to Cost: Measures the ratio between the total loan amount and ‘cost’ of the project which can include purchase price and cost of works.

DIP - Decision In Principle: Same as Agreement in Principle, shows a lender has indicatively agreed to lend to you should you accept their offer.

AIP - Agreement In Principle: Same as Decision in Principle, shows a lender has indicatively agreed to lend to you should you accept their offer.

SALIE - Statements of Assets, Liabilities, Income and Expenditure: An overview of the client’s financial status.

AST - Assured Shorthold Tenancy: A type of tenancy agreement generally used by private landlords.

SPV - Special Purpose Vehicle: A special purpose vehicle, also called a special purpose entity (SPE), is a subsidiary created by a parent company to isolate financial risk. Its legal status as a separate company makes its obligations secure even if the parent company goes bankrupt.

BRR - Buy, Refurbish, Refinance

HMO - House of Multiple Occupancy: A residential property where more than three or more tenants, forming more than one household, occupy the property 

JV - Joint Venture: a project undertaken jointly by two or more parties which otherwise retain their distinct identities.

QS - Quantity Surveyor: A construction industry professional with expert knowledge in construction costs and contracts. Usually employed by the Lender to check over your build costs and to assist with monitoring during the construction

MS - Monitoring Surveyor: A construction industry professional with expert knowledge in construction costs and contracts. Usually employed by the Lender to check to assist with monitoring during the construction

PG - Personal Guarantee: refers to an individual's legal promise to repay credit issued to a business for which they serve as an executive or partner. Providing a personal guarantee means that if the business becomes unable to repay the debt, the individual assumes personal responsibility for the balance (Investopedia)

ERC - Early Redemption Charge: a fee you might be required to pay when redeeming your loan. Also known as Redemption Fee. Most Lenders will have an Early Repayment Charge if redemption occurs during their fixed term period

 

What should be included in a Property Portfolio Breakdown when sending it to the Lender?

 

-Property Address

-Property Type

-Value of Property

-Lender with First Charge

-Monthly Rental Income

-Current Mortgage Balance

-Monthly Mortgage Payment

-Term of Loan Remaining

-Date of Purchase

 

How can I prepare for my loan?

 

To reduce any delays and get yourself ahead of the game, it’s worth having these documents easily accessible, for example in a folder on Google Drive:

 

-CV

-Property Portfolio

-Photographic ID

-Proof of Address

-3 Months of Bank Statements

-SALIE, Statements of Assets, Liabilities, Income, Expenditure

-Copy of Planning

-Build Schedule and Breakdown of Costs

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