Post by CrowdProperty Representative on Jun 21, 2019 11:17:19 GMT
Hi alexp2p and puddleduck,
Thank you for your comments regarding the Eastbourne project.
This project is a serviced bridging loan where interest is paid monthly to the lender. It is a serviced bridge of an already operating asset and there is no development risk. Interest rates on commercial mortgages for an asset like this would be charged at a considerably lower rate, at this LTV. However commercial mortgage products are still working to understand serviced accommodation and currently require more operating evidence than say HMOs (Houses of Multiple Occupation).
The amount we are lending is gross and we are retaining 6 months-worth of interest from this amount and will be invoicing the borrower monthly to recover the other 50%. The Loan to Value of 75% includes the retained interest, which means the capital element of the loan actually released represents 69.16% LTV.
If you do have any questions regarding this project please don’t hesitate to get in touch.
- Up to 8% pa first charge secured returns - 100% payback track record - Property expertise at the heart of the business - Only property development / bridging platform member of the P2PFA - First and only Brismo Verified property development / bridging platform - Directly FCA authorised and regulated