Some appetite for development and one off deals 10.06.2009

Author: David Whittaker Posted on: 10 June 2009

The key factor, as ever, is exposure at end value....

• Houses and refurbisments - no greater than 65% GDV
• Flats - typically no greater tahn 55% GDV unless prime location.

Those parameters reflect what you probably already know; flats are the biggest problem in the rceovery departments of all lenders. But location, location, location can sometimes improve on those terms.

Phased developments tend to work better within GDV parameters as sales in early phases can avoid the headroom constarint on GDV.

Surprisingly pricing and margin costs have increased less in this area than on longer term mortgages where different capital adequacy requirements result in lenders increasing their lending margin.

All development transactions are individually priced, so give us a call on 0845 3456788.