Community Asset Transfer Loan

This loan is open to any charities, voluntary or community group wishing to take on and develop a community asset transferred to it under the Government scheme.

It is a fixed rate loan and is designed for borrowing of between £100,000 and £6 million on either a leasehold or freehold property. 

Is it for you?

Purpose The Government wants to see local authorities and other public bodies transfer under-used buildings to community organisations as a way of improving amenities and services available to local communities. This facility enables access to affordable finance to enable the applicant to turn that empty building into a vibrant asset for the local community.
Borrower Normally Registered Charities and Development Trusts.
Amounts £0.1m to £6.0m.
Loan to value Max 75%.
Term 3yrs to 25yrs (normally subject to mutual 10 year "breaks").
Interest Margin Variable Typical margin: Base +1.5% to Base +3% (minimum 4% p.a.).
Fixed Available for up to 5 years (subject to availability).
Capital Repayment Holiday 2 years maximum.
Fees Flat Fee of £1,000. NOTE - All legal and valuation fees to be borne by the applicant.
Security First legal charge over the freehold or leasehold property transferred. Where the property is leasehold, it must have more than 35 years unexpired upon repayment of the facility.
Financial Covenants We would expect retained surplus + interest + depreciation (+ tax) to cover loan interest and repayments by at least 100%.
Requirements We would normally expect Unity Trust Bank to provide main bank relationship.

** Base = Bank of England Base Rate.

Interested?

For more information on our Community Asset Transfer loan simply: