Boost for local property market
The Northern Ireland property market is to get a boost with the launch of a locally-based bespoke bridging finance fund. The first of its kind in Northern Ireland, the Lanyon Capital Bridging Finance Fund will help to stimulate the property market by providing commercial loans from £50,000 up to £1.2 million to investors and developers seeking to purchase or develop good quality residential or commercial properties.
The Fund, which will commence business from June 2014, is managed by Belfast-based Lanyon Capital Ltd, a bridging finance lender providing bespoke short and medium-term funding solutions to the property market. The directors of Lanyon Capital have extensive knowledge of the local market, bringing together a combined experience of over 80 years in the accounting, banking, property and financial advisory sectors.
According to Lanyon Capital Director, Michael Corey, the launch of the Fund is in response to a gap in the local property funding market. “Now that Northern Ireland is experiencing modest economic recovery, a level of confidence has returned to the property market and owners, investors and developers now appear to be ready to move forward with major investment decisions.
“However, the banks are still unable or reluctant to support what could even be classed as relatively low risk propositions in the local property market. Lanyon Capital sees significant opportunities to assist investors and developers with these investment decisions.”
Finance for the Fund will be provided by a portfolio of private investors who will receive an annual interest income return on their original investment for a term of up to four years. Lanyon Capital will then use this finance to provide bridging loans to property purchasers and developers. These loans will be subject to set lending criteria and will typically be granted over a term of one to 12 months, with loan to value levels up to a maximum of 80% of the market valuation. All loans will be secured by way of a first charge to Lanyon Capital over the borrower’s property. Loans will not be made available in respect of a borrower’s main residence.
Lanyon Capital Director, Richard Weir commented: “We would expect applications for lending to be driven by a number of factors. For example, where a purchaser wishes to buy a property at auction from a bank receiver or liquidator but does not have the cash to purchase the property outright. Banks will generally not be able to make a loan available within the required short timescales, however, the purchaser can use a bridging loan pending refinance from the bank – it is the fast access to credit from the Fund which is most important.
“We would also expect applications from property owners who wish to refurbish an existing property or develop a site in order to add value, but have insufficient working capital to do so. Lanyon Capital will be prepared to consider a variety of repayment arrangements in order to fund such schemes.
“We want to send out the very strong message to property owners, investors, developers and their advisers that the Lanyon Capital Bridging Finance Fund is very much open for business and Lanyon Capital is now ready to take applications from prospective borrowers.”
For more information, contact Lanyon Capital Ltd on 2.