It is in this context that we highlight a successful Property Development Finance arrangement backed by Matthew Yassin, a 25-year industry veteran and Managing Director at Aquilae Capital Advisory. This collaboration involved a development finance facility of £842,000 with a 16-month term tailored to address specific project requirements. These needs included a refinance of £192,000 and an upfront provision of £100,000 to the borrower. Subsequently, monthly drawdowns of £100,000 will be effectively managed under the guidance of an appointed MS. The scheme was structured with a robust 70% Loan-to-Gross Development Value (LTGDV) and a well-defined exit strategy to refinance onto the Buy-to-Let (BTL) platform, allowing the borrower to retain the units within their portfolio.
Rizvan Raja, the Managing Director of Rizuma Group, who are developer investors focused on land , planning and development projects across London and the South East, faced an unexpected and challenging situation during the ground-up development project. The project had advanced to the slab stage when the incumbent finance provider abruptly pulled funding. This sudden stoppage had dire consequences, which impacted the schedule and progress made by the borrower.
With the construction poised to move forward , the developer was in dire need of a new funding solution to keep the project on track. Faced with the daunting task of finding a suitable funding partner to rescue the project from this precarious situation, Matthew made a pivotal decision to collaborate with Momenta Finance, based on several key factors:
- Commitment to Funding: Momenta showcased an unwavering commitment to providing funding, even in the most challenging circumstances, offering a lifeline to the developer in their hour of need.
- Commercial Approach: Momenta adopted a commercial approach, recognizing the unique challenges faced by the project and tailoring a solution that met its immediate and long-term financing requirements.
- 70% LTGDV Product: Momenta offered a compelling 70.5% Loan-to-Gross Development Value (LTGDV) product. This product allowed the developer to refinance from day one, access additional funds, and proceed with the project, regardless of the delays caused by external factors.
Matthew commented: “Throughout the funding process, Momenta Finance exhibited tenacity and a strong commercial approach. They addressed difficult questions and challenges with professionalism and dedication. Owen Fish, a Property Specialist at Momenta Finance, played a pivotal role by actively engaging in discussions, debates, and problem-solving. His contributions significantly contributed to the successful conclusion of the deal.”
The successful collaboration between Aquilae Capital Advisory, Matthew Yassin, and Momenta Finance stands as a testament to the importance of trusted partnerships and innovative financial solutions.
Development Finance Features:
Here’s what you can expect from our Property Development Finance:
- Loans of up to £2 million
- 24-month term
- 1st legal charge
- Leverage up to 75% LTV and 85% LTC
- Interest rate starting at 1% per month
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta offers a panorama of lending options, including unsecured and secured business finance, bridging and cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank and upholds the highest industry standards.
Among the various financing solutions available, two options stand out: property development finance and bridging loans. Each is designed to cater to specific needs in the real estate market.
Property Development Finance
Property development finance, caters specifically to real estate developers and investors seeking funds for property construction projects. Whether it’s refurbishing a residential property, construction on new residential or semi-commercial projects, or embarking on large-scale developments, property development finance offers a more extended repayment term and a structured financing approach tailored to the needs of the project. These loans are secured against the development project itself and are disbursed in stages, known as drawdowns, to align with the various phases of the development.
To secure property development finance, the following documentation and information are typically required:
- Planning Permission: Developers must provide evidence that planning permission for the proposed development has been granted.
- Cost Plan and Schedule: A detailed cost plan and schedule are essential to assess the viability and budget of the project.
- Borrower’s track record: Lenders usually review the borrower’s track record in property development to assess their ability to successfully complete the project.
- Planning Reference Number: The planning reference number is necessary for lenders to verify the planning permission status and details of the project
Property development finance offers a valuable funding solution for developers and investors looking to undertake residential property projects.
Bridging Loans: Understanding the Basics
In the ever-evolving world of real estate and property development, financial flexibility and quick access to funds can be crucial to seize promising opportunities. Bridging loans have emerged as a popular option to bridge the gap between a short-term cash flow requirement and a more permanent, long-term financial solution.
This loan type offers a short-term financial solution that provides the borrower with rapid access to capital. Bridging the gap between immediate cash requirements and more permanent funding sources. Our bridging loans serve as a flexible and dynamic tool, catering to diverse real estate needs. Let’s delve into a few key uses of bridging loans that can accelerate your real estate ventures:
- Equity Release against Properties: Do you own valuable properties but require immediate liquidity? Momenta Finance’s bridging loans can unlock the equity tied up in your existing properties. This option allows you to release cash without selling your assets, providing you with the financial freedom to invest in new ventures or address urgent financial commitments.
- Residential and Mixed-Use Refurbishment Projects: Property refurbishment projects can be highly profitable, but they often demand substantial upfront investment. Our bridging loans are well-suited to finance residential and mixed-use refurbishment projects. With swift approval and competitive rates, you can renovate properties to unlock their full potential and maximise returns.
- Property Purchases: Real estate opportunities arise unexpectedly, and seising them often requires immediate funds. Whether you’re looking to acquire a dream property or a lucrative investment, our bridging loans offer the quick financing you need to secure the deal with confidence.
- ‘Development Exit’ Strategy: Property developers occasionally encounter unexpected challenges or require additional time and funding to complete their projects successfully. Our bridging loans can act as a ‘development exit’ solution. Providing developers with the necessary time and financial support to complete their projects and maximise their returns.
Momenta Finance’s Bridging Loans and Development Funding at a glance
- Loan Amount: £200,000 up to £2 million
- Loan Term: Up to 24 months
- Security: 1st or 2nd charge basis
- Personal Guarantee: Yes
- Interest Rate: Starting at 1% per month
Bridging loans and property development finance play crucial roles in the dynamic landscape of real estate investment and development. When seeking financial assistance for your property ventures, we are a reliable and proficient partner, offering tailored solutions, efficient processes and a customer-centric approach.
Whether you’re a seasoned property developer or an investor, we can help you bridge the financial gap and propel your ambitions to success.
About Momenta Finance
Momenta Finance, formerly Merchant Money, is a leading provider of alternative finance solutions headquartered in London, United Kingdom. Established in 2013, Momenta Finance offers a panorama of lending options, including business finance, bridging loans, and business cash advances. The company’s commitment to transparency, tailored and credible funding has made it a trusted partner for businesses seeking financial support. Momenta Finance is accredited by the British Business Bank and upholds the highest industry standards.