Investment Property Loan

Our investment property loan is designed for organisations that want to invest some of their assets into property to help them provide accommodation for themselves and other similar organisations.

Is it for you?

Purpose Term funding is normally provided to assist with the purchase of premises to provide accommodation for local community based organisations.
Borrower Registered charities, umbrella organisations, Development Trusts, Registered Social Landlords, churches and other faith-based groups.
Amounts Normally £0.25m to £5.0m.
Loan to value Max. 70%.
Term 3yrs to 30yrs (normally subject to mutual 10 year "breaks").
Interest Margin Variable Typical margin over Bank Base** Rate: +2% (minimum 4% p.a.).
Fixed Available for up to 5 years (subject to availability).
Capital Repayment Holiday Can be considered for up to 2 years.
Fees Typically 1.5% of the amount of the advance. NOTE - all legal and valuation fees to be borne by the applicant.
Security Usually a first legal charge over the freehold or leasehold property. 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%. We would also expect rent roll to cover loan interest and repayments by at least 120%.
Requirements We would normally expect Unity Trust Bank to provide main bank relationship.

**Base = Bank of England Base Rate.

Applicants

  • The Bank's desire to lend will depend largely upon the strength of the covenant(s) of the lease(s). We are seeking good quality tenants with a strong reputation whose financials can be easily assessed.
  • We are looking for well located properties where there is continuing demand.

Interested?

For more information on our Investment Property Loan, simply: