Seneca Bridging Finance

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1 INTRODUCING Seneca Bridging Finance

2 Welcome to Seneca Bridging Finance Seneca is a principal lender, not a broker or intermediary service. We specialise in offering private funding for short term bridging loans. We are quick and professional with vast knowledge and experience. We provide the personal touch, we like to visit every property we lend on and meet everyone we lend to. Every bridging loan is different, at Seneca all cases are considered on their own merit and individually priced with competitive rates. We lend our own funds so we don t need to consult other lenders or banks. We are not an aggressive lender, instead we are flexible and work with borrowers who may experience delays or difficulties. The improving economic climate and growing bridging loan availability have led to bridging finance becoming an increasingly appealing option for investors and businesses. Bridging loans are popular for a number of purposes, they are being used to support residential and commercial property transactions, auction purchases, renovation and development projects. Seneca Bridging Finance reputation is built on providing quick and dependable finance through short lines of communication where we can usually provide decisions the same working day and move quickly in partnership with the client. Seneca offers short term lending solutions to clients who are looking for a fast and reliable service and with the comfort that we act in their best interests and in a responsible manner. In summary we have an appetite to lend with dedicated funds to fulfil most short term lending needs. INTRODUCING SENECA BRIDGING FINANCE

3 What Seneca Bridging Finance can provide We provide short term bridging loans secured by first legal charges on residential or commercial property and land. Our bridging solution is ideal for developers who need to move quickly, perhaps to secure a property at auction or to ensure fast completion prior to mortgage drawdown, or for renovation and refurbishment work which cannot easily be financed by a mortgage from the outset. Residential We are able to finance the acquisition of a residential property that will NOT be occupied by the Borrower or their family. Refurbishment We offer short term solutions where banks might be averse to lend to this type of market. If you or your client are looking to refurbish a buy-to-let property, or carry out a conversion with the intention of creating value and then selling or re-mortgaging the property with a mainstream lender, our residential investment products can help facilitate the funding required. Commercial Our commercial bridging loan products for commercial property acquisition and refurbishment can ensure that potentially lucrative investment opportunities are not missed. 3

4 Development We are able to finance quality smaller development projects where we have certainty over exit via a mainstream lender or a contracted sale. We pride ourselves on understanding the projects, ensuring the Borrower has sufficient funds in place to complete the project and on how quickly we are able to deliver funds to our clients. We have created flexible funding solutions for experienced house builders on residential and mixeduse developments. Seneca Bridging Finance offers affordable payment options catering for most cash flow requirements. We take first legal charges over the property or land and we are aware that every bridging loan is different and so we consider all cases on their own merit. We lend our funds so we don t have to consult other lenders or banks and usually we will be able to issue Heads of Terms within 24 hours of our meeting. INTRODUCING SENECA BRIDGING FINANCE

5 Our process The Seneca Bridging Finance team pride themselves on being professional with vast knowledge and experience in the property finance sector. We are not aggressive lenders; instead we are flexible and work closely with clients, we like to visit every property we lend on and meet everyone we lend to. We take a first legal charge and mortgage debentures supported by personal guarantees (if lending through a limited company). We will fund development costs depending on exit strategy and gross development value (GDV) and would usually look to a maximum outstanding loan at completion of 65% of the GDV. We typically charge an arrangement fee of 1% plus any broker costs at entry and a 1% exit fee. Our aim is to be entirely transparent without any hidden charges which is not always the case with many other lenders. Six easy steps 1. Complete our enquiry form which can be found on our website or alternatively send us details of your requirements via or simply call us to discuss your requirements by telephone. 2. Once the enquiry has been received we will endeavour to call or you within 24 hours. 3. Based on initial discussions should you wish to proceed, we will arrange to visit the property and meet with you to discuss the terms of the facility. 4. We will usually issue Heads of Terms within 24 hours of our meeting. 5. Once Heads of Terms have been signed we will instruct a valuer and lawyers. 6. Upon receipt of a satisfactory valuation and lawyers confirmation that Conditions Precedent have been satisfied, we will send monies to a designated account of your choosing by same day transfer. 5

6 Why Seneca Seneca Bridging provides flexible short term funding allowing property developers to undertake refurbishment or renovation to increase value and either refinance the property through a mainstream lender or to sell the property. There is usually limited conditionality around the facility. We are a non-regulated bridging provider which means we cannot provide finance on a residential home which the borrower or their family is living in. We provide finance for the purchase of residential and commercial premises, usually refurbishment projects with a defined exit route. We provide development finance for refurbishment projects and for new build projects where we have certainty over the exit route. Interest and costs can be rolled up throughout the term of the facility. We pride ourselves on quick responses with short lines of communication and a hands on approach to ensure you secure your investment. Complete transparency over all costs. We work closely with clients and if they encounter difficulties we will work with them to find solutions and restructure the loan when appropriate. INTRODUCING SENECA BRIDGING FINANCE

7 Our team Steve Charnock Steve qualified as a chartered accountant in 1986 before joining Charterhouse Securities as a building and construction analyst, later becoming a Managing Director and Head of Research. He was voted number one construction analyst in 2000 and 2001 in the Reuters survey for UK smaller companies. He co-founded Seneca Partners in 2010 and sits on a number of private company boards. T M E Steve.Charnock@senecabridging.co.uk Tim Murphy Tim has over 30 years experience in corporate finance ultimately having responsibility for the national Mid-Cap structured finance business for Royal Bank of Scotland. In 2005, Tim joined Deloitte, Manchester, as a corporate finance partner with the remit to establish the national debt advisory business, advising on capital raising and stressed debt refinancing. Tim joined HBOS as UK Managing Director Large Corporate in Tim joined Seneca after founding NorthEdge Capital which focused on stressed corporate opportunities. T M E Tim.Murphy@senecabridging.co.uk Mark Hopton Mark qualified as a chartered accountant with KMPG in 1991 and has extensive experience of corporate finance and restructurings. He joined Seneca in 2011 to assist in the management of our investee companies. He provides invaluable financial management, analysis and reporting both internally and as an outsourced client service. T M E Mark.Hopton@senecabridging.co.uk 7

8 Natalie Smethurst Natalie has worked within the Financial Services Industry for over 15 years and joined Seneca in August 2014 as part of the Bridging Finance Team. She is a member of the Institute of Financial Services (IFS) where she has gained various industry related qualifications, including the Advanced Certificate in Mortgage Advice and Practice (Adv CeMAP). T E Natalie.Smethurst@senecabridging.co.uk Aziz Shan Aziz graduated from the University of Leeds with a first in Law and went on to complete a master s degree in International Business Law at the University of Manchester. Aziz then qualified as a barrister (2010, Inner Temple). Prior to joining Seneca as part of the banking advisory team in 2013, Aziz litigated in commercial, employment and negligence matters. T M E Aziz.Shan@senecabridging.co.uk Aidan Tiernan Aidan joined Seneca in January 2015 as part of the Bridging Finance Team. Aidan s experience spans over 20 years within the banking, property and finance industry. Aidan held the position of Finance Director for a successful bridging finance company and has since started his own master brokerage, Creative Commercial Funding Ltd. M E Aidan.Tiernan@senecabridging.co.uk Richard Sullivan Richard is the latest member of the Seneca Bridging Team and brings with him a wealth of knowledge from the bridging industry. He has worked with master broker Y3S as an account manager. From Y3S he has worked with and been integral in the inception and growth of two start up bridging lenders as a Business Development Manager. M E Richard.Sullivan@senecabridging.co.uk INTRODUCING SENECA BRIDGING FINANCE

9 FAQs What is a bridging loan? It is an interest only short term loan secured on land or property. We will secure by way of a first charge. What is a first charge? A first charge is the primary mortgage or loan secured against the property which takes precedence over all other finance secured against it. What are the main uses of bridging loans? Bridging loans can be used in both commercial and residential property transactions. Homebuyers, home builders, property converters, landlords, property developers and investors can use the short term loan. Whether buying a property, building a property or raising funds for a refurbishment project, short term bridging finance can be an option. We offer non-regulated bridging finance and our products are not available if you or a member of your family plan to live in the property now or in the future. I m buying a property at auction and need funds quickly, is bridging finance an option? Bridging is ideal for use when buying a property at auction as borrowers are able to gain access to funds quickly which is a necessity with auction purchases. Where do you get your funds from? Seneca has a range of funds which are usually provided by private investors. 9

10 How much can I borrow? As long as you have sufficient security, funding is generally available for up to 70% of loan to cost or 65% of Gross Development Value (GDV) whichever is the lower. We will consider lending a higher percentage at the beginning of a project if significant value is bring created and the final repayment is estimated to be less than 65% of GDV. Where do you lend? We lend only against property based in the UK. How long can I take a loan for? A bridging loan is designed to be short term and is generally taken out for a term of between 1 and 12 months. What is the minimum amount you will lend? 25,001. What interest rate will I pay? Rates will depend on a number of factors including the loan to value ratio and the quality of the security, but can typically range between 1.5-2% per month. The interest rates on bridging loans are typically higher than standard/normal mortgages as they often carry more risk to the lender. We aim to provide short term funding at a predictable cost to borrowers. Is a valuation required? Yes. The fee is payable by the borrower prior to Seneca instructing surveyors and will vary depending on the type of property, location and value. INTRODUCING SENECA BRIDGING FINANCE

11 How long will it take to get a decision? If you have supplied all the necessary information we need, in most cases we will give you an immediate decision. Will I need a solicitor? We will instruct a solicitor to act for Seneca to investigate title, prepare the loan agreement and to execute the mortgage debenture and guarantee documents (as defined in the Heads of Terms). They will also register the charge on the property and all such legal fees will be borne by the borrower. The legal fees are payable whether the loan proceeds or not. It is recommended that the borrower obtains independent legal advice prior to signing any legal documents and entering into a bridging loan. The process provides protection for both the borrower and the lender. Do I need to speak to a broker to take out a bridging loan? You can arrange finance with Seneca via a broker or by coming to us direct. Can I repay the loan early? Yes, you can repay the loan early usually without penalty. What is an exit route? An exit route is a predetermined strategy to enable you to receive funds to pay back your loan within the required term. A sound and viable exit plan is essential in any bridging loan application. 11

12 As a property developer, I feel that it is important that I deal directly with a company that understands the market. In dealing with Seneca, not only have I had access to their property team but also their decision makers. Their dynamic approach means a quick response to my cashflow requirements throughout my projects from conception to completion. Seneca have worked with me and supported me when things haven t always gone to plan. Scott Carmichael, C & S Ventures Ltd T: E: enquiries@senecabridging.co.uk W: Seneca Bridging Limited (Company No ) Seneca Bridging Limited s registered office is at 12 The Parks, Haydock, WA12 0JQ.