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Tuscan Capital enters commercial bridging market

Tuscan Capital has entered the commercial lending market with the launch of its first product dedicated to property landlords and developers.

 

The new commercial product is available up to 65% loan-to-value (LTV), for a 3 to 18-month term, maximum borrowing is set at £5m and it is for purchase, refinance or capital raising.

It is for retail units, office units, warehouses, industrial premises, land with planning as supporting security (land element up to 55% LTV), and assets of non-standard construction (up to 55% LTV).

It has also revealed a improved appetite for larger loans (£3m to £10m) where multiple properties or portfolios are being acquired, as well as a new 2- to 3-year term facility for existing borrowers.

The new term facility offers up to 70% gross development value (GDV), with equity release allowable, interest to be fully-serviced monthly from the rental income, the term for between 24 and 36 months and rates from 0.575% per month.

Tuscan Capital has outlined greater criteria flexibility across the existing range of light refurbishment, heavy refurbishment, mixed-use conversion and developer-exit products.

Tuscan Capital confirmed it has been able to make these enhancements following the renewal of one of its original institutional funding facilities and the introduction of a new private funding partnership.

Colin Sanders, chief executive of Tuscan Capital, said: “Our new wider lending proposition has been made possible through our access to multiple funding channels which are distinct from the rest of the market.

“Our funding partners complement one another as they have different and differing risk appetites.

“This gives us the flexibility to consider business which would not typically tick the boxes of institutional funders, and allows us both to price competitively for risk while taking a realistic, commercial approach where the quality of the deal justifies it.

“Having enjoyed a stellar 2021 and building our loan book beyond all expectations, we head into 2022 with a significantly enhanced proposition and a strengthened operational team to support it.”

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