COMMERCIAL MORTGAGES BOOKLET PRAGMATIC DECISIONS We look at each deal sensibly and realistically. This practical approach builds close relationships with our broker partners and better outcomes for your customers. FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER FOR NEW AND EXISTING STL ENQUIRIES EMAIL OR CALL THE STL TEAM ON CM.STL@SHAWBROOK.CO.UK TEL: 01277 751 103 LAST UPDATED 27/07/15 SB/CM/CB/270715/28
CONTENTS SHORT TERM FINANCE (STL1, STL2 & STL3) page 3 SHORT TERM FINANCE FOR LIGHT REFURBISHMENT (STL4 & STL5) pages 4 & 5 SHORT TERM FINANCE FOR HEAVY REFURBISHMENT (STL6, STL7 & STL8) pages 4 & 5 RESIDENTIAL REFURBISHMENT (RR1 & RR2) & pages 6 & 7 RESIDENTIAL INVESTMENT (RI1, RI2 & RI3) LARGE LOAN RESIDENTIAL INVESTMENT S (LRI1, LRI2 & LRI3) & pages 8 & 9 LARGE LOAN COMMERCIAL INVESTMENT S (LCI1, LCI2 & LCI3) COMMERCIAL INVESTMENT S (CI1, CI2 & CI3) TRADING BUSINESSES (TB1, TB2 & TB3) & pages 10 & 11 KEY CRITERIA AND CONTACTS page 12 FEES AND CHARGES page 13 VALUATION METHODOLOGY page 14 FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER FOR NEW AND EXISTING STL ENQUIRIES EMAIL OR CALL THE STL TEAM ON CM.STL@SHAWBROOK.CO.UK TEL: 01277 751 103 2
All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. Max loan size relates to total exposure to client. STL1, STL2, STL3: SHORT TERM FINANCE LOAN SIZE MAX LTV Up to 60% LTV 61% - 65% LTV 66% - 70% LTV TERM & EARLY REPAYMENT INTEREST SERVICING ARRANGEMENT FEE PARTNER COMMISSION INTEREST AND CHARGES OPTIONS STL1 Residential Up to 70% Lower of PP or MV 0.65% pm 7.05% 0.69% pm 7.53% MAX LTV Up to 60% LTV 61% - 65% LTV 66% - 70% LTV STL2 Mixed use STL3 Commercial 50k to 15m Up to 65% Lower of PP or MV Up to 60% Lower of PP or MV 0.77% pm 8.49% MAX LTV Up to 60% LTV 61% - 65% LTV 66% - 70% LTV 0.83% pm 9.21% N/A N/A Maximum 18 months No minimum interest and no ERCs Interest can be: i) serviced by Direct Debit ii) retained upon completion for the approved loan term iii) retained for a number of months (specified by the client) with remaining interest payments serviced by Direct Debit NB Interest is charged on the gross loan including retained interest payments 1.95% Full fee added to the loan outside of max LTVs 1.50% of the gross loan, paid on completion LOAN PURPOSE Please note, margin will increase by 3% if the facility is not redeemed within the agreed term STL1, STL2 & STL3 - Purchase either residential or commercial property quickly. - Raising finance for the acquisition of another property (supporting evidence or proven track record critical). - Replacing existing finance pending sale please note any capital raising will require a detailed explanation of its purpose and supporting evidence. The valuer must comment that the market demand is good and we would expect the market rent to cover our term loan requirement. - If the property is not in a suitable condition to rent on completion and works are required, the client will only be eligible for our STL refurbishment products (STL4-8). EXPERIENCE Applicants should be experienced investors - defined as owning at least 2 current investment properties (which need to be detailed within the Property Schedule). SWITCHING TO A TERM LOAN If the client is intending to hold the property for rental, please consider our term products - the existing client discount WILL be applied. The arrangement fee on the new loan would be 0.95% (added to the loan on completion outside of LTV). Partners commission is paid at 0.50%. EXISTING CLIENTS We are pleased to offer a 0.25% discount on the margin OR a 0.25% reduction in the arrangement fee for clients who have been party to a completed loan with Shawbrook. SLAs - Our dedicated team are committed to being able to process new enquiries within a maximum of 4 hours and post within 24 hours. You are able to run your own illustrations from our online broker hub. KEY CRITERIA Discounts available on margin OR arrangement fee for existing clients We will always require a detailed repayment strategy for the loan. Our solicitors can be instructed via an undertaking letter at any stage of the process - we encourage this as early in the process as possible. All STL loans will be subject to an on-site post completion client visit. Clients to evidence independent material income which must support the interest on the facility as well as other personal and business commitments. STL2 - Where the property is mixed use, the need for a commercial lease will depend on the valuers comments on the viability of the residential parts. STL3 - Where the property is wholly commercial, a suitable long commercial lease will need to be in place with investment grade tenants (vacant commercial property unacceptable). STL3 - Where the property has planning in place (no works can be carried out throughout this loan) and you are looking for Shawbrook to lend against the value with planning, the planning MUST have a minimum of 12 months outstanding at the end of the term of the loan. Refinances: On all refinance cases, we will require a detailed overview confirming the property s history (purchase price, works, existing finance history etc), what they are looking to achieve and why a short term loan is the solution. We are sensitive to repaying bridging finance and/or specialist lenders. If you can provide us with a thorough explanation of the situation along with copies of the original documentation demonstrating that the client is within the terms of that agreement to mitigate any concerns, we will consider these. Purchases: Deferred consideration and vendor loans are unacceptable. The deposit must be funded from the client s own sources. Additional security considered in lieu of cash deposits. Please note where the client is offering a 2nd charge, this is limited to residential security only and we will work up to 70% LTV minus the existing first charge balance. For clients looking to hold the property on a long term investment basis we will require the valuer to confirm estimated market rent and comment on the local market demand. FOR NEW AND EXISTING ENQUIRIES CONTACT THE SHORT TERM LOAN TEAM ON: CM.STL@SHAWBROOK.CO.UK TEL: 01277 751 103 LAST UPDATED 27/07/15 SB/CM/CB/270715/28 3
All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. Max loan size relates to total exposure to client. STL4 & STL5: FINANCE FOR LIGHT REFURBISHMENT MAX LTV PRICING TERM & EARLY REPAYMENT INTEREST AND CHARGES INTEREST SERVICING OPTIONS ARRANGEMENT FEE PARTNER COMMISSION STL4 Residential Up to 70% Lower of PP or MV MAX LTV 0.73% pm 8.01% PRICING Maximum 18 months No minimum interest and no ERCs Interest can be: i) serviced by Direct Debit ii) retained upon completion for the approved loan term iii) retained for a number of months (specified by the client) with remaining interest payments serviced by Direct Debit 1.95% Full fee added to the loan outside of max LTVs 1.50% of the gross loan, paid on completion STL5 Mixed use Up to 65% Lower of PP or MV 0.83% pm 9.21% NB Interest is charged on the gross loan including retained interest payments Please note, margin will increase by 3% if the facility is not redeemed within the agreed term Discounts available on margin OR arrangement fee for existing clients STL6, STL7, STL8: FINANCE FOR HEAVY REFURBISHMENT STL6 Single residential units MAX LTV Up to 70% Lower of PP or MV PRICING 0.79% pm 8.73% TERM & EARLY REPAYMENT INTEREST AND CHARGES INTEREST SERVICING OPTIONS Interest can be: ARRANGEMENT FEE PARTNER COMMISSION STL7 Multi-units & HMOs STL8 Semi-Commercial & Commercial MAX LTV Up to 70% Lower of PP or MV MAX LTV Up to 65% Semi-Commercial Up to 60% Commercial Lower of PP or MV PRICING 0.85% pm 9.45% PRICING 0.89% pm 9.93% Maximum 18 months No minimum interest and no ERCs i) serviced by Direct Debit ii) retained upon completion for the approved loan term iii) retained for a number of months (specified by the client) with remaining interest payments serviced by Direct Debit NB Interest is charged on the gross loan including retained interest payments 1.95% Full fee added to the loan outside of max LTVs 1.50% of the gross loan, paid on completion Please note, margin will increase by 3% if the facility is not redeemed within the agreed term Discounts available on margin OR arrangement fee for existing clients 4
KEY CRITERIA ALL S We will always require a detailed repayment strategy for the loan. Our solicitors can be instructed via an undertaking letter at any stage of the process - we encourage this as early in the process as possible. All STL loans will be subject to an on-site post completion client visit. Clients to evidence independent material income which must support the interest on the facility as well as other personal and business commitments. Valuer to comment on the schedule of works and whether the budgeted cost is appropriate. Evidence of the funds required to support level of refurbishment spend planned. Refinances: On all refinance cases, we will require a detailed overview confirming the property s history (purchase price, works, existing finance history etc), what they are looking to achieve and why a short term loan is the solution. We are sensitive to repaying bridging finance and/or specialist lenders. If you can provide us with a thorough explanation of the situation along with copies of the original documentation demonstrating that the client is within the terms of that agreement to mitigate any concerns, we will consider these. Purchases: Deferred consideration and vendor loans are unacceptable. The deposit must be funded from the client s own sources. Additional security considered in lieu of cash deposits. Please note where the client is offering a 2nd charge, this is limited to residential security only and we will work up to 70% LTV minus the existing first charge balance. For clients looking to hold the property on a long term investment basis we will require the valuer to confirm estimated market rent and comment on the local market demand. UNACCEPTABLE WORKS - ACROSS ALL S: Full development projects Commercial to Commercial Refurbishment Adding floors including basement excavations Commercial properties without full planning consent in place on completion SWITCHING TO A TERM LOAN If the client plans to hold the property for rental, please consider our term products - the existing client discount WILL be applied. The arrangement fee on the new loan would be 0.95% (added to the loan on completion outside of LTV). Partner s commission is paid at 0.50%. EXISTING CLIENTS We are pleased to offer a 0.25% discount on the margin OR a 0.25% reduction in the arrangement fee for clients who have been party to a completed loan with Shawbrook. STL4, & STL5 LIGHT REFURBISHMENT Refurbishments to be non-structural in nature and spend cannot exceed 15% of the day one value/ purchase price. Works need to be on the residential element. Eligible works: - Redecoration throughout - Replacing current facilities such as kitchens and bathrooms - Central heating install, update or replace - Electrics - upgrade, rewire, etc - Specialist works to remedy issues - HMO conversions where the works cost less than 15% of current value and there are no structural works to be done and the property does not require planning for change of use. Please note, the experience required needs to be specifically on HMO property. No change of use, structural alterations or works requiring planning permission (see Heavy Refurb range) Experience required: Applicants should either be 1. Experienced investors - defined as owning at least 2 current investment properties (which need to be detailed within the Property Schedule) or 2. Have undertaken 2 similar scale projects within the last 2 years (which need to be detailed within the Previous Projects Schedule). Valuation required: STL4 a standard residential valuation is required on properties valued up to 1,000,000, over 1m a commercial valuation will be required. A commercial valuation is always required on all STL5 applications. STL6 & STL7 & STL8 HEAVY REFURBISHMENT Refurbishment spend exceeds 15% of the day one value/ purchase price. Eligible works: - Extensions/loft conversions - Removing internal walls - Works requiring planning consent (planning must have a minimum of 12 months to run from origination. It will also be a standard condition that the work must begin within 3 months) - Change of use where the property has full detailed planning consent in place. (Limited to 65% LTV) - Where the client is taking advantage of Permitted Development Rights, the mortgage term cannot exceed December 2015 (Limited to 60% LTV). Experience required: Applicants should provide evidence of a track record of at least 2 (completed projects) (similar scale and cost) within the last 2 years detailed in the Previous Projects Schedule and/ or supporting evidence. Valuation required: STL refurbishment valuation acceptable on STL6 (residential) where the property is valued up to 1m (Please ensure you inform appraisers that works are classed as heavy refurbishment. The works schedule will need to be sent to the valuer for their comments). Properties valued over 1m on STL6 a commercial valuation will be required. A commercial valuation is always required on all STL7 (HMOs & Multi units) & 8 (Mixed use and Commercial) applications. LIKELY SCENARIOS FOR OUR LIGHT REFURBISHMENT S Client purchasing a property that requires thorough cleaning and redecoration before the property can be marketed for rental/ re-sale. Completing a complete refurbishment on a property that has been previously let with the view to re-let or sell on once complete. Improving market demand by updating facilities. Specialist property client buying a property with a known issue with the intention to remedy the issue and then rent/sell the property. FOR NEW AND EXISTING ENQUIRIES CONTACT THE SHORT TERM LOAN TEAM ON: CM.STL@SHAWBROOK.CO.UK TEL: 01277 751 103 LIKELY SCENARIOS FOR OUR HEAVY REFURBISHMENT S Single dwelling used where the client sees the opportunity to add value by increasing the usable space in the property, perhaps with an extension or internal restructure HMOs either an existing HMO that requires structural changes to maximise the space available or conversions of single dwellings to HMOs Multi-units either complete refurbishment of multiple flats or where planning exists to convert a single dwelling into flats/ maisonettes to increase rental revenue and/ or value Semi Commercial likely to be the conversion of the commercial element to residential or some heavier refurbishment to the existing residential element of the security Commercial likely to be either under permitted development rights (60% max) OR where planning permission has already been granted to convert a commercial property to residential or mixed use (65% max). SLAs - Our dedicated team are committed to being able to process new applications within a maximum of 4 hours and post within 24 hours. You are able to run your own illustrations from our online broker hub. LAST UPDATED 27/07/15 SB/CM/CB/270715/28 5
All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. Max loan size relates to total exposure to client. RR1, RR2: RESIDENTIAL REFURBISHMENT TERM LOANS FROM 50k TO 2.5m LOAN TO VALUE UP TO 75% OF THE AFTER-WORKS VALUE RR1 Residential refurb Up to 65% LTV 4.75% 66% - 70% LTV 4.95% 71% - 75% LTV 5.10% TERM AND REPAYMENT Part Capital & Full Capital: 3 year term, 5% capital repaid (1). Fixed periods from 3, 4 and 5 years. If the Fixed period expires before the mortgage term, Market Rent to cover the payment at 125% of the Fixed Interest Rate (1) 3%, 3%, 1% 5 year term, 7.5% capital the product reverts to the Up to 65% LTV 66% - 70% LTV 71% - 75% LTV repaid (2). (2) 3%, 3%, 3%, standard product margin + 3 3%, 1% month LIBOR for remainder Interest Only: of mortgage term. Market rent to cover RR2 4.85% 5.10% 5.20% 3 year (1). payment cover at 125% HMO See website for current of margin + 2.75% 5 year (2). refurb pricing details. (stress LIBOR) ERCs payment at 110% of margin + 1.75% stress LIBOR Market Rent to cover the payment at 140% of the Fixed Interest Rate ARRANGEMENT FEE 1.50% 0.25% payable upon acceptance of the offer 1.25% added to the loan PARTNER COMMISSION 1% of the gross loan amount paid on completion (paid in two instalments) Discounts available on margin OR arrangement fee for existing clients NB Interest is charged on the gross loan including retained funds SLAs - AIP, FMA and post is processed within 72 hours. You are able to run your own illustrations from our online broker hub. We are pleased to offer a 0.25% discount on the margin OR a 0.25% reduction in the arrangement fee on loans up to 750,000 for any clients who have been party to a completed loan with Shawbrook. Any future lending has a streamlined process. We require only a short form application form and valuation report to be able to proceed to formal mortgage offer. Updated bank statements will only apply if 12 months have passed since the first application or if there is a material change on the updated credit search that requires further investigation. However a face to face interview may be required. Please note: this does not apply to Shawbrook wrap cases (where you replace one Shawbrook loan with another on the same security). LOAN PURPOSE This product has been developed for clients purchasing or refinancing residential property with the intention of completing some minor decorative refurbishment before letting out the property. This is a 3/ 5 year option for the client where we will lend 75% of the lower of purchase price and market value with a retention held for up to 75% of the after works figure (released after subsequent valuation provided and confirmation that the property is tenanted). Our definition of light refurbishment is as follows: RR1 & RR2 No planning permission required. Property must be habitable. Client has no intention of changing the use of the property during the course of the Shawbrook advance. The only exception to this is where the client is planning to convert the property to a HMO (RR2). No structural changes to be made to the property. Typical sense check - refurbishment spend not to exceed 15% of day one value/ purchase price. FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@ SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER KEY CRITERIA Loans over 750,000 may be limited to 70% LTV. Client will pay interest on the full balance from completion. This product is available on residential property only. Clients must have experience in completing similar renovations in the past, defined as completing 1 similar project within the last 12 months. Experienced investors only with strong personal net worth, defined as owning 1 investment property for a minimum of 12 months. Market rent after works as confirmed by valuer must cover our requirements. Please note, the property must be habitable on completion, so a kitchen and bathroom need to be in place, regardless of condition. Please ensure the property is in an area with strong rental demand and the valuers commentary confirming positive location and rental demand is essential. Valuer to comment on the schedule of works and whether the budgeted cost is appropriate. A satisfactory re-inspection will be required once all works are completed. We will require evidence of the cash required to support level of refurbishment planned if it is not coming from our advance. Clients to evidence independent material income which must support the interest on the facility as well as other personal and business commitments. The works must be completed and a signed tenancy agreement in place within 6 months of completion. If we are not in receipt of a new satisfactory valuation and tenancy agreement within this time frame the retention amount will not be released to the client, it will be applied to their account balance. RR2 - where the client is converting the property to a HMO, they must have completed a minimum of 2 similar conversions within the last 2 years and they must be experienced in the management of similar size HMO s (hold at least 1 within their portfolio or hold 5 x investment properties). 6
RI0, RI1, RI3, RI2: RESIDENTIAL INVESTMENT TERM LOANS FROM 50k - 750k LOAN TO VALUE UP TO 75% Up to 50% LTV 51% - 60% LTV 61% - 65% LTV 66% - 70% LTV 71% - 75% LTV TERM AND REPAYMENT ERCs * ARRANGEMENT FEE RI0 Simple residential 3.79% 3.89% 3.99% 4.10% RI1 Specialist residential RI3 Portfolios RI2 HMO/ student lets Up to 50% LTV 51% - 60% LTV 61% - 65% LTV 66% - 70% LTV 71% - 75% LTV 4.40% 4.60% 4.65% 4.70% Up to 50% LTV 51% - 60% LTV 61% - 65% LTV 66% - 70% LTV 71% - 75% LTV 4.50% 4.60% 4.75% 4.80% 4.85% Up to 50% LTV 51% - 60% LTV 61% - 65% LTV 66% - 70% LTV 71% - 75% LTV Part Capital & Full Capital: 3 year term, 5% capital repaid (1). 5 year term, 7.5% capital repaid (2). 10-30 year terms, 70% capital repaid or full capital repaid (3). Interest Only: 3 year (1). 5 year (2). 10 year term (3). Fixed periods from 3, 4 and 5 years. If the Fixed period expires before the mortgage term, the product reverts to the standard product margin + 3 month LIBOR for remainder of mortgage term. See website for current pricing details. 1) 3%, 3%, 1% 2) 3%, 3%, 3%, 3%, 1% 3) 3%, 3%, 3%, 3%, 1% thereafter 4) 3%, 3%, 3%, 3%, 1% thereafter 5) for 3 year same as 1), for 5 year same as 2) for 10 year same as 4) Up to 5 year term payment at 110% of margin + 1.75% (stress LIBOR) Over 5 year term payment cover at 110% of margin + 2.75% (stress LIBOR) payment at 125% of margin + 2.75% (stress LIBOR) Up to 5 year term Market Rent to cover payment at 125% of the Fixed Interest Rate Over 5 year term please use variable payment at 140% of the Fixed Interest Rate Over 5 year term please use variable 1.50% arrangement fee 0.25% payable upon acceptance of the offer 1.25% added to the loan EX-PATS RI0- Please add 0.25% loading to the relevant LTV bucket RI1, 2 & 3 - Please add 0.10% loading to the relevant LTV bucket PARTNER COMMISSION 1% of the gross loan amount paid on completion Discounts available on margin OR arrangement fee for existing clients FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER 7
RI0 Simple residential RI1 Specialist residential RI2 HMO/ student lets RI3 Portfolios EX-PATS ACCEPTABLE PROPERTY TYPES Maximum exposure on this product is 750,000. Simple single residential assets (ex-local acceptable). Let to single household, private tenants. Rental income needs to fully cover requirements. The property does not require any works prior to tenancy. Multiple leasehold units in one block or on one title. Leasehold flats where the client owns part/all the freehold. New build/newly converted flats within last 12 months. Flats commercial property. Company Lets. Property let to the Council or Housing Association in part/whole. Residential properties requiring works before they can be let out. Multi-units are valued on the basis of the aggregate value. Please note - this is subject to the valuer s guidance that if the units were re-sold the market would not be restricted to investors only as one unit. Small HMOs that are used as a HMO but wouldn t sell on the open market as a HMO (Valued as a Private Dwelling). Small HMOs where fabric of property has changed to adapt the product to a HMO. Small HMOs within an area where Article 4 directive is in place. Large HMOs (Sui Generis). Please note the property must have the correct planning permission approvals (where applicable) in place on completion. Please note, cluster block student lets will be priced as a commercial property, not residential. 2 or more properties on separate titles that are being purchased/re-mortgaged at the same time. We have a minimum individual property value of 50k and the valuers comments on condition and demand to sell portfolio/ multiple units in a block will be paramount. Any of the security types are acceptable. Where the property is a HMO, we will require specialist HMO managing agents to be in place for completion. ACCEPTABLE CLIENT PROFILE Maximum exposure on this product is 750,000. Available for individuals, LLPs and UK limited companies only. Experienced property professionals only, defined as owning 1 investment property for a minimum of 12 months OR evidence of owning a previous portfolio of properties. Deposit needs to be funding from own sources. No previous adverse accepted CCJ s, Mortgage Arrears or Linked Business Adverse. Please note there is also a lower set of Legal Fees for this product, for the simpler scenarios please see Page 14 for more details. Available for individuals, LLPs, UK limited companies, Foreign Nationals (with permanent rights to reside), Offshore companies (with UK directors & UK properties) and SIPP s. We can also finance applicants looking to buy a simple residential asset without the required experience where they have a minimum income of 50,000 and a net worth of 500,000. Outside income can be considered, subject to the rental providing 100% cover on. Applications where additional security is used in lieu of cash deposit Experienced property professionals with a successful track record in the HMO/Student Let sector, defined as owning at least 1 similar sized HMO/Student Let for a minimum of 12 months OR 5 x investment properties for 12 months. Where the client uses a specialist HMO property agent, we can consider applications without the full experience detailed but we will need to underwrite the specialist agent please discuss these applications with the sales desk in the first instance. Experienced property professionals with a successful track record in the sector whose current portfolio is sensibly geared and there is sufficient income within the portfolio to cover management costs and voids. Individual clients who have a UK passport but reside abroad OR UK Ltd Co s where Directors/Shareholders are UK citizens but are living abroad. Clients must have a UK bank account. Hold a minimum of 2 UK investment properties; one must have a mortgage outstanding that has been serviced for the last 12 months. Minimum income 50,000. KEY CRITERIA Experienced property professionals, defined as owning 1 investment property for a minimum of 12 months OR evidence of owning a previous portfolio of properties. Available in England, Scotland & Wales. Where the client has a portfolio of properties we will stress this at a notional 7% interest rate to consider overall gearing. Loan size limit of 15,000,000 applies to client exposure. Personal guarantees of directors always required where someone has more than 20% shareholding. An Assured Short hold Tenancy is to be in place on completion subject to a minimum term of 6 months and a Where the rental income covers payment on an interest only basis only but the client would like some form of maximum term of 36 months. amortisation, we can consider utilising any additional income that is available and verifiable. (Not eligible on RI1). For loans over 750,000 please refer to our Large Loan products. Additional security accepted this can enable us to effectively fund 100%. (Not eligible on RI1). Our is calculated on the lower of passing rent or market rent confirmed by the valuer Where the property is 50+ miles away from a major town/ city we will be sensitive to the rental demand for that property. We are pleased to offer a 0.25% discount on the margin OR a 0.25% reduction in the arrangement fee on loans up to 750,000 for any clients who have been party to a completed loan with Shawbrook. (*Please note that for our RI0 product the will not include the 0.25% discount for existing customers when calculating the max LAST UPDATED 27/07/15 SB/CM/CB/270715/28 loan amount). 8
LRI1, LRI2, LRI3: LARGE LOAN RESIDENTIAL INVESTMENT TERM LOANS FROM 750k LOAN TO VALUE UP TO 75% Up to 65% LTV 66% - 75% LTV TERM AND REPAYMENT ERCs ARRANGEMENT FEE LRI1 Single dwellings LRI3 Portfolios 4.20% Up to 65% LTV 4.40% 66% - 75% LTV Interest Only - up to 75% LTV 3 year (1) 5 year (2) 10 year (3) Part Capital & Full Capital 3 year term, 5% capital repaid (1) 5 year term, 7.5% capital repaid (2) 10-30 year terms, 70% capital repaid or full capital repaid (3) Fixed periods from 3, 4 and 5 years. If the Fixed period expires before the mortgage term, the product reverts to the standard product margin + for remainder of mortgage term. See website for current pricing details. (1) 3%, 3%, 1% (2) 3%, 3%, 3%, 3%,1% (3) 3%, 3%, 3%, 3%, 3%, 1% thereafter Up to 5 year term = Market Rent to cover payment at 110% of margin + 1.75% (stress LIBOR) Over 5 year term = Market Rent to cover payment cover at 110% of margin + 2.75% (stress LIBOR) Please note; on low yielding assets surplus income can be considered Up to 5 year term = payment at 125% of the Fixed Interest Rate Over 5 year term = please use variable 1.50% 0.25% payable upon acceptance of the offer 1.25% added to the loan LRI2 HMOs/ student lets 4.30% 4.50% payment cover at 125% of margin + 2.75% (stress LIBOR) payment at 140% of the Fixed Interest Rate Over 5 year term = please use variable PARTNER COMMISSION 1% of the gross loan amount paid on completion LCI1, LCI2, LCI3: LARGE LOAN COMMERCIAL INVESTMENT TERM LOANS FROM 750k LOAN TO VALUE UP TO 70% OF VACANT POCESSION TERM AND REPAYMENT Up to 65% LTV 66% - 70% LTV ERCs ARRANGEMENT FEE LCI1 Commercial LCI2 Semi-commercial LCI3 Mixed portfolio 6.35% Up to 65% LTV 5.30% Up to 70% LTV 5.10% N/A 66% - 70% LTV 5.45% Interest Only LCI1 up to 65% LTV LCI2 and LCI3 up to 70% LTV 3 year (1) 5 year (2) 10 year (3) Part Capital & Full Capital 3 year term, 5% capital repaid (1) 5 year term, 7.5% capital repaid (2) 10-30 year terms, 70% capital repaid or full capital repaid (3) Fixed periods from 3, 4 and 5 years. If the Fixed period expires before the mortgage term, the product reverts to the standard product margin + for remainder of mortgage term. See website for current pricing details. (1) 3%, 3%, 1% (2) 3%, 3%, 3%, 3%,1% (3) 3%, 3%, 3%, 3%, 3%, 1% thereafter payment cover at 110% of margin + 2.75% (stress LIBOR) payment cover at 110% of margin + 2.25% (stress LIBOR) Up to 5 year term = payment at 140% of the Fixed Interest Rate Over 5 year term = please use variable Up to 5 year term = payment at 140% of the Fixed Interest Rate Over 5 year term = please use variable 1.50% 0.25% payable upon acceptance of the offer 1.25% added to the loan PARTNER COMMISSION 1% of the gross loan amount paid on completion 9
All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. Max loan size relates to total exposure to client. SLAs - SLAs AIP, FMA and post is processed within 5 working days. You are able to run your own illustrations from our online broker hub. SCENARIO Single residential dwellings Likely to be considered trophy assets LRI1, LRI2 & LRI3 Where the property is low yielding (normally central London), we can take into account surplus income when calculating affordability. Please note; the location of the property will have an impact on the level of lending available. Blocks Valuers commentary is key regarding demand and concentration risks. As a guide the maximum is 10 in a block where the asset is strong. We can and have considered larger blocks. HMOs & Student Lets Clients must have direct experience in managing these. If the property is a Student Let and is a Cluster block then please note LCI1 pricing will apply. As a guide the maximum is 20 units in a student block where the asset is strong. We can and have considered larger blocks. Large Residential Portfolios Lending nationwide. KEY CRITERIA All Products As standard we will lend up to 15,000,000 - although loans in excess of this amount on LRI are considered. Loan size limit applies to client exposure. We will also consider low yielding assets, where surplus income is available. Shawbrook as standard require full personal guarantees of directors where they have more than 20% share holding, however we will consider limiting the amount of the guarantee for strong transactions. Where the client has a portfolio of properties we will stress this at 7% interest cover to assess overall gearing. Additional security accepted. Clients interview always required, normally at our Brentwood Head Office. The property must have the correct planning permission approvals (where applicable) in place. Bespoke amortising available. LOAN PURPOSE LCI1, LCI2 & LCI3 Our funding is ordinarily used to finance a purchase or to refinance existing commercial or semi-commercial portfolio/ property because the client is looking to release capital or facing non-renewal from an existing lender (acceptable subject to good conduct). LCI1 - Commercial security LCI2 - Semi-commercial - any residential element of the security must have its own separate access to be considered a semi-commercial investment. We do not offer regulated mortgages. LCI3 - Mixed Portfolio - where 70% based on value is residential and no more than 30% is commercial or semicommercial. Wholly Commercial Portfolios Lending nationwide. Mixed Portfolios Lending nationwide. KEY CRITERIA * Please note; we can consider lending against the Market Value where the property has multiple tenancies or a blue-chip tenant and the client has selected to repay part of the capital. As standard we will lend up to 5,000,000 - although loans in excess of this amount on LCI are considered. If the lease expires throughout the term the valuers commentary on the local area, i.e. the number of similar units currently available and rental demand will be paramount. If there is a lease in place between the client and their business, the client is eligible for LCI products. However we will require sight of the accounts and the income will be based on these not the rent received. Please note; we do not offer existing client discounts to be applied on term loans over 750,000. Please note; we do not offer existing client discounts to be applied on term loans over 750,000. FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER LAST UPDATED 27/07/15 SB/CM/CB/270715/28 10
CI1, CI2, CI3: COMMERCIAL INVESTMENT TERM LOANS FROM 75k - 750k LOAN TO VALUE UP TO 75% OF VACANT POCESSION TERM AND REPAYMENT Up to 50% LTV 51% - 60% LTV 61% - 70% LTV 71% - 75% LTV ERCs ARRANGEMENT FEE CI1 Commercial CI2 Semicommercial 5.30% 4.90% 5.40% 5.90% Up to 60% LTV 61% - 70% LTV 71% - 75% LTV CI3 Mixed Portfolios 70% of the mixed portfolio needs to be residential by value 4.75% 5.15% Up to 60% LTV 61% - 65% LTV 66% - 70% LTV 5.00% 5.15% 6.50% 5.90% 71% - 75% LTV 5.75% Interest Only CI1 up to 65% LTV CI2 and CI3 up to 70% LTV 3 year (1) 5 year (2) 10 year (3) Part Capital & Full Capital 3 year term, 5% capital repaid (1) 5 year term, 7.5% capital repaid (2) 10-30 year terms, 70% capital repaid or full capital repaid (3) Fixed periods from 3, 4 and 5 years. If the Fixed period expires before the mortgage term, the product reverts to the standard product margin + for remainder of mortgage term. See website for current pricing details. (1) 3%, 3%, 1% (2) 3%, 3%, 3%, 3%,1% (3) 3%, 3%, 3%, 3%, 3%, 1% thereafter Market Rent to cover payment cover at 110% of margin + 2.75% (stress LIBOR) Market Rent to cover payment cover at 110% of margin + 2.25% (stress LIBOR) Up to 5 year term = Market Rent to cover payment at 140% of the Fixed Interest Rate Over 5 year term = please use variable 1.50% 0.25% payable upon acceptance of the offer 1.25% added to the loan PARTNER COMMISSION 1% of the gross loan amount paid on completion Discounts available on margin OR arrangement fee for existing clients ACCESS TO THE BELOW S IS AVAILABLE VIA OUR STRATEGIC PARTNERS ONLY. TB1, TB2, TB3: TRADING BUSINESSES TERM LOANS FROM 150k - 2.5m LOAN TO VALUE UP TO 75% 65% ON LOANS OVER 750,000 SECTORS Up to 50% LTV 51% - 60% LTV 61% - 70% LTV 71% - 75% LTV TERM AND REPAYMENT ERCs ARRANGEMENT FEE TB1 Commercial 5.30% 5.40% 5.90% 6.50% Fixed periods from 3, 4 and 5 years. TB2 Semicommercial All trading business, leisure, retail & industrial SECTORS Up to 50% LTV 4.90% Up to 60% LTV 51% - 60% LTV 61% - 70% LTV 5.15% 71% - 75% LTV 5.90% Part Capital & Full Capital 10-20 year terms, 70% capital repaid or full capital repaid If the Fixed period expires before the mortgage term, the product reverts to the standard product margin + 3 month LIBOR for remainder of mortgage term. 3%, 3%, 3%, 3%, 3%, 1% thereafter Adjusted net profit to provide 110% full capital payment cover at margin + 2.75% (stress LIBOR) Please use variable 1.50% 0.25% payable upon acceptance of the offer 1.25% added to the loan TB3 Pubs Public houses only 6.40% See website for current pricing details. PARTNER COMMISSION 1% of the gross loan amount paid on completion Discounts available on margin OR arrangement fee for existing clients 11
All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. SLAs - AIP, FMA and post is processed within 72 hours. You are able to run your own illustrations from our online broker hub (please ensure you select the property bucket as Mixed Portfolio to obtain CI3 pricing). EXISTING CLIENTS We are pleased to offer a 0.25% discount on the margin OR a 0.25% reduction in the arrangement fee on loans up to 750,000 for any clients who have been party to a completed loan with Shawbrook. Any future lending has a streamlined process. We require only a short form application form and valuation report to be able to proceed to formal mortgage offer. Updated bank statements will only apply if 12 months have passed since the first application or if there is a material change on the updated credit search that requires further investigation. However a face to face interview may be required. Please note: this does not apply to Shawbrook wrap cases (where you replace one Shawbrook loan with another on the same security). TB1, TB2 & TB3 CI1, CI2 & CI3 LOAN PURPOSE Our funding is typically used to finance the purchase of new premises for the client s business or raising working/ investment capital by refinancing an existing business property. TB2 - Semi commercial - Any residential element of the security must have its own separate access to be considered as semi-commercial. We do not offer regulated mortgages. Trading businesses - Max loan size relates to total exposure to client. Loans over 750k are considered by exception. KEY CRITERIA Minimum Loan size 150,000. Submission by SP s only. Full pack submission required (without valuation) at AIP stage. Clients must be currently running the same or a connected business. We will not process any new business startups or lifestyle purchases. We require full accounts to evidence a minimum of 1 years trading history (2 years on TB3) However if the accounts are over 6 months old we will also require the management accounts to evidence the more recent trading history. Max loan size related to total exposure to the client. Loans over 750k are considered by exception. We will lend up to 90% of the purchase price where our applicant is a sitting tenant (subject to standard LTV restrictions). Good credit conduct on secured and unsecured lending. We will also look at the credit profile of any business that they are associated with. On trading businesses we will work off MV2 valuation. Please see the valuation methodology page for more information. Where the clients are raising additional funds, we will require a thorough breakdown of how these funds are to be used and how they will benefit the growth of the business. A business valuation will be required on leisure properties and we will lend against MV2 assumptions (TB3 max 60% LTV). Additional security accepted. * In instances where there is a formal lease between the client and their Ltd Co, please note Trading Business rules apply around loan size and submission. GUIDANCE NOTES ON ACCEPTABLE SECURITY Property type Points to note Leisure properties Modern industrial/ warehouse/ factory units Offices Retail units Public houses (TB3) LOAN PURPOSE Our funding is ordinarily used to finance a purchase or to refinance existing commercial or semicommercial portfolio/ property because the client is looking to release capital or facing non-renewal from an existing lender (acceptable subject to good conduct). CI1 - Commercial security CI2 - Semi commercial - Any residential element of the security must have its own separate access to be considered a semi-commercial investment. We do not offer regulated mortgages. CI3 - Mixed Portfolio - Where 70% based on value is residential and no more than 30% is commercial or semi-commercial. KEY CRITERIA * Where the client s business is the tenant, please note Trading Business rules apply around loan size and submission. * Please note we will lend against Market Value where the property has multiple tenants and the valuer confirms in the event of voids that the property would be rented again within a 6 month period. Available in England, Scotland and Wales. Loan size limit applies to client exposure. For loans over 750,000 please refer to our Large Loan products. Additional security accepted this can enable us to effectively fund 100%. Personal guarantees of directors always required where someone has more than 20% share holding. is based on the lower of market rent or passing rent. We do not limit the term to the length of the lease. When we interview the client we will want to confirm whether the client has discussed lease terms with their current tenants and what they are expecting at the next rent review/ lease expiry. This should also be covered within the AIP form. We will require details on the tenants, i.e. how long they have been in situ, the strength of their business and establish, if they left, how easily a new tenant could be found. Where the property has a single tenant the underlying clients strength is essential. If the lease expires throughout the term the valuers commentary on the local area, ie. the number of similar units currently available and rental demand will be paramount. Please ensure your summary makes reference to these points. Where the client uses short licences rather than AST s it is essential that occupancy rates/ track record are confirmed and these will be critical to our lending decision. NB These cases will be considered as a trading business application. If there is a lease in place between the client and their business, the client is eligible for CI products. However we will manage this case as a Trading Business, which can only be submitted by Strategic Partners and we require sight of the accounts and the income will be based on these, not the rent received. The strength of the application is in the clients. We want to see sufficient experience in the trade and the application summary should refer to this. The property needs to be in a good location in a satisfactory condition. We will lend against MV2. The summary should provide detail on their business model confirming how the clients market their services and any functions it may also run. Please note we will not consider lifestyle purchases. The location of the property and the demand for properties for rental purposes within this area are essential. As a guide, the property should be modern or alternatively well maintained and in a good condition. The summary should provide detail on their business model, location is important and the surveyor should comment as to whether there is suitable demand for the property. We also need to understand how the clients market their product/ services and their plans for the future. The business will need to be established and able to demonstrate its performance with full accounts. The property will need to be in a good location with strong demand and in a satisfactory condition. Where the client uses short licences rather than AST s it is essential that occupancy rates/ track record are confirmed and these will be critical to our lending decision. We will lend to all types of retail units including hot food establishments with or without accommodation. The property must be in a busy primary or secondary location with plenty of passing trade and be in good condition with a demand for the product or service that is sold. The client needs to be experienced in the trade. Public houses are a higher risk category, but one where we have an appetite to lend on strong performing pubs. The pub needs to be trading currently and we need to understand how it performs throughout the year. The client s experience is essential. Where a client is moving their pub business to new premises, the premises cannot be closed currently, even if the client is based locally. We will only consider public houses that have a current acceptable trading history. FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER LAST UPDATED 27/07/15 SB/CM/CB/270715/28 12
KEY CRITERIA AND CONTACTS KEY CRITERIA First legal charge over acceptable freehold or long leasehold title (minimum of 55 years remaining at term expiry) property in England, Scotland and Wales. All loans are available for individuals, LLPs, UK limited companies and offshore limited companies. Please note all offshore transactions will have a minimum loan size of 500,000. They must operate in a mainstream jurisdiction, i.e. Cayman Islands, Channel Islands, Isle of Man, BVI and Gibraltar. (Where the jurisdiction is Gibraltar the maximum loan available is 1,000,000) they must also own other UK assets and the directors/ beneficiaries must be resident in the UK and over the age of 21. Max loan size relates to total exposure to client. The purpose of the loan can be for purchase, transfer of equity, refinance or capital raising (detailed and satisfactory explanation required). A1 credit profile on secured and unsecured lending. We will also look at the credit profile of any businesses that clients are associated with. We will take a pragmatic view of any small blemishes in their credit conduct, but any missed mortgage payments and personal CCJ s within the last 24 months are likely to lead to rejection. Minimum age 21, maximum age 80. Personal guarantees are always required from all directors with more than 20% share holding. Variable mortgage tracking 3 month London Interbank Offer Rate (LIBOR). This will be reset 1st January, 1st April, 1st July, 1st October. Please note, Shawbrook adopts a minimum LIBOR rate of 0.75% which will not be applied until LIBOR reaches 0.75%. Interest is calculated daily and charged monthly in arrears. All mortgages must be paid by Direct Debit. Non-regulated mortgage contracts only. SIPP applications accepted - please note minimum loan size 500,000. UNACCEPTABLE PROPERTY TYPES Any specialised property types Holiday/ Caravan Parks. Care Homes. Nightclubs. Agricultural Properties Development Finance. Gyms. where usage means the market is limited. Freehold Flats. Investment Pubs. Equestrian. Places of Worship. Golf Clubs. Land. Grade 1/ Grade A Listed property. Football Clubs. Purpose-built Gyms. Shopping Centres. Any property with specialist usage. KEY CONTACT DETAILS New enquiries New applications Pipeline applications Short term team Broker Relationship Management Team Sales Desk; The Sales Desk is on hand to support with the initial discussions on any potential cases. If you have any applications that are not straightforward or there are elements you would like to discuss before submitting for IMO, then give the Sales Desk a call. Lending Operations; The team underwrite and process all applications from AIP through to completion. There are mandated Lending Managers that own the case throughout the process supported by Lending Officers ensuring there is a focused approach to obtaining all necessary information for proceeding to completion in the quickest timeframe possible. Short Term Loan Team; This dedicated STL team underwrite and process all STL applications from AIP through to completion. There are mandated Lending Managers who own the case throughout the process supported by Lending Officers ensuring there is a focused approach to obtaining all necessary information for proceeding to completion in the quickest time frame possible. cm.salesdesk@shawbrook.co.uk 01277 751 111 cm.admin@shawbrook.co.uk 01277 751 177 cm.stl@shawbrook.co.uk 01277 751 103 Karen Bennett Sales & Marketing Director Karen.Bennett@shawbrook.co.uk 01277 751 133 07795 456 114 Jim Moulton Head of Marketing and Broker Engagement Jim.Moulton@shawbrook.co.uk 01277 751 185 Emma Cox Head of Sales Emma.Cox@shawbrook.co.uk 07823 531 371 Sarah Woolf North East and East Midlands Senior Relationship Manager Sarah.Woolf@shawbrook.co.uk 07795 571 606 Andrew Faed Home Counties and London Andrew.Faed@shawbrook.co.uk 07887 496 835 Regional Development Manager Peter Turner Southern Counties and London Peter.Turner@shawbrook.co.uk 07887 496 836 Lee Albino - North West and North Wales Lee.Albino@shawbrook.co.uk 07747 496 430 Steve Matthews - Kent and London Steve.Matthews@shawbrook.co.uk 07765 978 991 Business Development Manager Gavin Seaholme - South Central Gavin.Seaholme@shawbrook.co.uk 07584 240 851 Peter McDermid - Scotland Peter.McDermid@shawbrook.co.uk 07887 496 836 Scott Apps - East Anglia and London Business Development Executive Scott.Apps@shawbrook.co.uk 07795 456 113 FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE LAST UPDATED 26/03/15 SB/CM/KC&C/260315/10 13
FEES AND CHARGES FEES Valuation fee Payable by applicant (can now be paid online). Broker partner to confirm and instruct valuation via the panel manager (and Quest). Please see the Valuation Fee Scale on the broker hub for guideline pricing. RR1 & RR2 - Re-inspection cost TBC depending on the type of property and size. Business valuation typically 1,200 + VAT. Any residential properties valued in excess of 1m will require a commercial valuation. Panel Managers Lender arrangement fee Lender legal fees - Standard Specialist pricing Covering RI1-3, CI1-3, RR1-2, LRI1-3, LCI1-3, STL1-8 as standard Covering RI0 where; Ltd Co Ex-pat Transfer of Equity Lender Legal Fees Simple Residential Investment pricing Covering RI0 only please take note of exemptions. Shawbrook s Panel Solicitors Early repayment charges Appraisers UK Ltd 01454 855444 www.appraisersuk.com Please see product terms as these will be specific to each product. These range from 1.50% - 1.95%. 0.25% is collected on offer as a commitment fee, the balance is added to the loan, outside of LTV s. Loan size Commercial & semi commercial property Residential investment property Up to 100k 950 + VAT 650 + VAT 101k - 300k 1250 + VAT 750 + VAT 301k - 500k 1450 + VAT 850 + VAT 501k - 750k 1650 + VAT 950 + VAT 751k - 1m 1950 + VAT 1050 + VAT > 1m The fees are confirmed on a case by case basis depending on the structure of the application. Plus disbursements including title insurance (costs range from 160-520) and any additional security being taken. Legal fees deducted from loan advance. Applicants require their own solicitor to act for them on purchase applications (including transfer of equity). On re-mortgages, individual applicants can proceed without separate solicitors (Non-Rep). Only eligible on RI0 products Purchase up to 750k in individual name for UK residents Refinance up to 750k in individual name for UK residents Loan size Up to 200k 201-400k 401k - 750k England and Wales Pure Law - Tel: 01277 897 300 Email: enquiries@purelawllp.co.uk Product - Term 1) 3 year term, 5% capital repaid 2) 5 year term, 7.5% capital repaid 3) 10-30 year terms, 70% capital repaid 4) 10-30 year terms, full capital repaid 5) Investment Loans - Up to 75% LTV, (70% on semi-commercial, 65% on commercial property), 3, 5, 10 year interest only Product STL No minimum term. Maximum term 18 months on all STL products. 350 plus VAT per additional property All plus VAT & disbursements All electronic payments to be 35 (incl VAT) per payment Refinance 350 + VAT 425 + VAT 495 + VAT ERC 1) 3%, 3%,1% 2) 3%, 3%, 3%, 3%, 1% 3) 3%, 3%, 3%, 3%, 3%, 1% thereafter 4) 3%, 3%, 3%, 3%, 3%, 1% thereafter 5) for 3 year same as 1), for 5 year same as 2), for 10 year same as 4) Excludes loans to corporate borrowers or non UK residents or non UK nationals. Excludes loans falling outside bank title insurance lending policy (i.e. auction sales, unregistered title, sales from mortgages/ receivers/ insolvency practitioners etc) Scotland Purchase 425 + VAT 495 + VAT 595 + VAT Wilson McKendrick - Tel: 0141 222 7950 Email: info@wilsonmckendrick.co.uk OVERPAYMENTS Clients can pay up to 10% of their mortgage balance on both short term and term products each calendar year without any early repayment charges. FOR NEW ENQUIRIES EMAIL OR CALL THE SALES DESK ON: CM.SALESDESK@SHAWBROOK.CO.UK TEL: 01277 751 111 FOR EXISTING ENQUIRIES EMAIL OR CALL THE LENDING TEAM ON: CM.ADMIN@SHAWBROOK.CO.UK TEL: 01277 751 177 QUOTING YOUR REFERENCE NUMBER LAST UPDATED 27/07/15 SB/CM/F&C/270715/12 14
VALUATION METHODOLOGY This document is for professional intermediaries only and should not be shown to potential clients. LAST UPDATED 27/07/15 SB/CM/VM/270715/10 RESIDENTIAL COMMERCIAL TRADING BUSINESS ACCEPTABLE PROPERTY TYPES TYPE OF REPORT VALUATION DEFINITIONS Single Residential Properties up to 1 million Studio Flats more than 30sqm Up to three flats on separate leasehold titles Ex Local Authority Flats Single Residential Properties over 1 million Maisonette split into two flats Multi Residential unit in a block (Max 5 storeys and 10 flats) HMOs Cluster blocks (max 20 units) Offices Modern Industrial/ Warehouse units/ Factory units Retail units with or without accommodation Offices Modern Industrial/ Warehouse units/ Factory units Retail units with or without accommodation Hotels Gueshouses Bed and Breakfast Purpose build Restaurants Public Houses (TB3 60% of MV2 max) Residential Commercial Commercial Commercial Commercial Commercial Business Market Value (MV) - The current value for which the property should exchange on the day of valuation excluding goodwill, fixtures & fittings etc. between a willing buyer and a willing seller. Vacant Possession (VP) - Current value of the property with vacant possession and not subject to leases MV - The current value for which the property should exchange on the day of valuation excluding goodwill, fixtures & fittings etc. between a willing buyer and a willing seller. VP - Current value of the property with vacant possession and not subject to leases Aggregated Value (AV) - The value of all individual units Single Investor Value (SIV) - The value of the building if sold to 1 investor with tenants in place Investment VP (IVP) - The value of the building if sold to 1 investor with vacant possesion HMO 1 - The security can be used on a multi let basis but: the works to convert are minimal and it is logical that an investor is more likely to purchase a cheaper property and convert than pay a premium. (This will be valued on a Private Dwelling basis PD) HMO 2 - The property has no article 4 directive, there is no planning in place and other units are sold as PD. However, the fabric of the building has had significant change to be utilised as an HMO which would seperate this from a PD. There must be a viability for this to be sold as an HMO with the valuer to consider comparables and Yields taking into consideration Gross and Net rental amounts. (This will be valued on the basis of MV) HMO 3 - Article 4 is in place and therefore the property is clearly viable as an investment. Valuer to consider comparables and Yields taking into consideration Gross and Net rental amounts. (This will be valued on the basis of MV) (MV) - The current value for which the property should exchange on the day of valuation excluding goodwill, fixtures & fittings etc between a willing buyer and a willing seller. (VP) - Current value of the property with vacant possession and not subject to leases (VP) - Current value of the property with vacant possession and not subject to leases MV 1 - The current value for which the property should exchange on the date of valuation including the goodwill, fixtures and fittings etc between a willing buyer and seller MV 2 - AS MV, excluding goodwill but assuming no accounts are available but the business is still trading. MV3 - As MV2 but the business is closed WHAT SHAWBROOK LENDS AGAINST MV MV AV - Subject to the valuer confirming a strong sales demand exists on an individual basis whereby enough units could be sold within a 12 month period. Other definitions considered HMO 4 - Planning in place (Sui Generis) to be used as a large HMO. Valuer to consider comparables and Yields taking into consideration Gross and Net rental amounts. (This will be valued on the basis of MV) MV - When there is an Investment grade tenant or the property is multi let and subject to 1)Having a capital repayment element over a 3 year period that reduces the loan to an LTV against the VP that is within the most up to date product range 2) Valuer confirming good demand for tenants 3) Loan against VP is no higher than 85% and not in excess of 180 day value. VP - in other instances VP MV2 LTV MAXIMUM CALCUATED ON Up to 75% of the lower of the Purchase price or MV Up to 75% of the lower of the Purchase price or MV Up to 75% of the lower of the Purchase price, AV, SIV, IVP Up to 75% of the lower of the Purchase price or PD or MV Up to 75% of the lower of the Purchase price or MV or VP Up to 75% of the lower of purchase price or VP Up to 75% of lower of the purchase price or MV2 (NB TB3 restricted to 60% LTV). Tenants purchasing at a discount can borrow up to 90% of the purchase price subject to not exceeding 75% (60% TB3) of MV2, providing they have been in the property for more than 12 months. 15
Shawbrook Bank Limited REGISTERED OFFICE: LUTEA HOUSE, WARLEY HILL BUSINESS PARK, THE DRIVE, GREAT WARLEY, BRENTWOOD, ESSEX, CM13 3BE. REGISTERED IN ENGLAND - COMPANY NUMBER 388466. SHAWBROOK IS AUTHORISED BY THE PRUDENTIAL REGULATION AUTHORITY AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY AND THE PRUDENTIAL REGULATION AUTHORITY.