Commercial Finance News:- Construction firms north of the border have been told to shut up shop unless their work is for essential projects due to the coronavirus pandemic.
Work related to supporting crucial work to deal with Covid-19 such as repurposing buildings to offer clinical care will be allowed.
Economy secretary Fiona Hyslop said she recognised this was difficult for all kinds of businesses, but the government’s priority was to save lives.
“To this end, all construction sites should close unless they are essential to the health and welfare of the country during this crisis.
“I want to make clear our thanks to the construction workers who are continuing to work on these essential projects.”
| Product | Max LTV | Up to 50% LTV | 50.01 – 65.00% LTV | 65.01 – 75.00% LTV | Term & Repayment | Arrangement Fee |
|---|---|---|---|---|---|---|
| Residential Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.43% pm | 0.53% pm | 0.60% pm | Maximum term 24 months No minimum interest or ERCs Interest Fully Rolled Up, Part-Rolled Up or Serviced (subject to affordability) The net advance will be less total potential interest over the term with the gross loan calculated as interest for the entire term and the arrangement fee added. | 1% -1.5% Full fee added to the loan. |
| Semi Commercial Including Light Refurbishment | Up to 75% Lower of PP or MV | 0.6% pm | 0.6% pm | 0.6% pm | ||
| Commercial Including Light Refurbishment | Up to 70% Lower of PP or MV | 0.75% pm | ||||
| Residential Heavy Refurbishment | Up to 75% Lower of PP or MV | 0.60% pm | 0.65% pm | 0.7% pm | ||
| Commercial and Semi Commercial Heavy Refurbishment | Up to 70% Lower of PP or MV | 0.83% pm | 0.83% pm | 0.7% pm | ||
Other essential work includes critical infrastructure repair and maintenance and projects for crucial public services.
“It is vital that all businesses act responsibly and align fully with the social distancing measures introduced to protect the nation’s health, well-being and economic future,” said Ms Hyslop.
She thanked the Scottish Trade Union Congress, Unite and Construction Scotland for their input on the guidelines and highlighted support packages businesses should access.
Scotland set to miss housing target
Scottish housing minister Kevin Stewart on Twitter said it was unlikely the country would hit its target of building 50,000 affordable homes by 2021.
The Scottish government’s decision about building contrasts with the UK government where construction sites are allowed to continue.
Last week the Construction Leadership Council, a joint industry and government body, issued guidance that sites should close unless companies maintained the 6ft distancing rule.
However, the Council swiftly reversed the guidance after building firms told them this would mean mass site closures and would impact on Nightingale hospital work.
Commercial Finance by HZA
Brokers Hank Zarihs Associates said commercial development finance lenders were keen for sites to stay open so that housing projects started before the lockdown could be completed.