Development Funding News:- Business secretary, Alok Sharma, has thanked the construction industry for rising to the challenge of ensuring people have safe and healthy homes and helping the NHS.
Mr Sharma wrote an open letter yesterday, March 31, praising the sector for supporting the country and the economy in its time of need.
“The construction industry has answered the call to action. Whether by building temporary hospital wards, installing complex and life-saving oxygen systems, constructing the infrastructure that society needs to function or ensuring that people have safe and healthy homes to live in, you are delivering for our nation through this difficult time,” he said.
He acknowledged distance working would be difficult for many but they should follow the Construction Leadership Council’s, CLC, site operating procedures.
| 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 | ||
Mr Sharma said he was in regular contact with industry leaders over the developing situation and thanked the sector for its “valued and critical contribution”.
“You are making a hugely valued and critical contribution to the resilience of our nation and I salute you for the enormous efforts you are individually undertaking to support the UK economy,” he said.
Temporary site closure guidance issued
On Monday, March 30, the CLC released guidance to help close sites temporarily during the coronavirus outbreak where it was impossible to comply with the new site operating procedures.
“This guidance is intended to ensure that any shutdown is safe and allows the site to recommence operations promptly after the suspension is lifted,” it said.
A number of key areas including making closed sites safe as they had a legal obligation to minimise risks and potential hazards even in the event of trespass were flagged up.
Maintaining dialogue between client and suppliers to find solutions and referring to contractual requirements when temporarily closing a site was stressed. The CLC has also issued guidance on contractual issues caused by the virus.
It advises having a structured plan for shutdown including documenting site progress, reviewing insurance and ensuring emergency services have access to the site.
The site should be made secure with suppliers given enough notice to remove the equipment they need. Coming to an agreement with hire companies about possible extending contracts was also advised.
Development Funding by HZA
Brokers Hank Zarihs Associates said property development funding companies supported the move to leave sites in a good state ready for re-opening as soon as the coronavirus risks ease.