Real estate debt FAQs
Our Sterling loans range in size between £20m and £250m, but we may consider larger applications, particularly for portfolios of assets. Our Euro loans range between €20m and €65m.
We can offer loans on both fixed and floating rate bases.
- Terms for fixed rate loans can range between 5 and 25 years.
- Terms for floating rate loans can range between 3 and 7 years.
- For both fixed and floating rates, terms can range between 3 to 10 years.
The arrangement fee will depend on the complexity of the loan and the number of properties involved in the financing.
The management fee depends on the complexity of the underlying asset portfolio. An ongoing management fee may be payable.
External fees, including the costs of due diligence (including legal and valuation fees) will be payable by the borrower, as will any agency fees.
In addition to the capital and any outstanding interest, an early redemption fee may be payable. This will be outlined in any term sheet we provide.
We expect our loan to be repaid in full. If you wish us to renew the loan facility, then you should contact our Relationship Management Team at an early stage - at least three months before maturity - so that any new loan is ready to take effect from the expiry of the existing loan.
Cross charging is a legal process whereby loans are linked together to give the lender wider powers of recourse. So if a shortfall occurred on the sale of one property, it could be made up from surpluses on other loans within the cross charge. Cross charging can be a useful underwriting tool, in that a shortfall in one loan’s cash flow may be supplemented by surplus rent from a property in another loan within the cross charge.
No, unfortunately we cannot offer VAT loans.
Need more information?
Contact the real estate debt team for loans of £5m or more.