Lending Criteria

When considering loans emphasis is placed on the project and management team employed to deliver it and thus a very significant element of our lending is non-recourse.

We are equally comfortable lending to established companies as well as to special purpose vehicle companies (SPVs) incorporated specifically for the purpose of taking forward the development or acquiring the investment property.

Security generally consists of a mortgage debenture over the borrowing company and/or a first legal charge over the property acquired. We adopt a practical approach to the provision of personal guarantees, generally limiting any guarantee taken to 10% of the amount of loan.

CPF lend up to 60% of gross development value for residential development purposes and up to 70% of resultant investment value for pre-let development purposes. If the pre-let development is also pre-sold to an acceptable purchaser the percentage lend can be increased.

For predominantly new build residential transactions,we will consider lending up to 70% of gross development value for an enhanced return.

Where we are lending prior to planning permission being in place we will lend up to 50% of the sites current "with hope" value.

Loans for investment property purchases are extended at up to 70% cost/value.

We are happy to consider refinance proposals.

Our consistent approach to lending means that where other banks may review their policy on property lending resulting in a change of criteria, or even withdrawal from the lending market place (as was the case with many banks during the last recession) CPF's consistent approach backed by the strength and diversity of the Close Brothers Group activities enables it to consider loan opportunities in such circumstances.

Each loan application is considered upon its own merits and facilities are structured and priced to suit the nature and specific requirements of the case.