Residential Funding
Residential Funding - Guidelines
The residential funding market subdivides as lenders tend to specialize in areas of activity.
So what might be right for lender A does not meet the criteria of lender B
Here are some of the separate areas of expertise - please note that we have not included the day to day street houses / apartments as these tend to be the first choice of all the lenders in the market.
1. High-End Residential Properties
This refers to prime & high value properties - very location specific.
There are one or two specialist lenders only, who understand this market. The level of client equity contribution, the location combined with track record / experience reflects lenders very cautious approach
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2. Social Housing
This refers to mainly grant subsidized residential properties aimed at providing affordable accommodation and is an unusual market for the private sector as the Housing Associations (HAs) dominate.
This is of course where one considers the whole, whereas most larger developments will have an element of social housing which is normally pre-committed to an HA.
3. Student Accommodation
It is a very vibrant and demand led sector, separated into three elements:
a. The University or an HA on their behalf make a commitment to run the premises
b. Private landlords build and run purpose-built student accommodation blocks
c. Street houses owned and run by private landlords.
All elements have their support lenders for experienced landlords
4. Sheltered Housing and Care Homes
This refers to residential properties often including medical facilities for the over 55s market
The most important consideration is the tenant and their experience in running this type of accommodation.
Lenders are slowly warming to this sector but need to feel that the sponsor understands the market fully.
5. Owner Occupied Mortgages
These are outside of CLP's area of activity, although we work closely with FSA regulated providers to whom we can refer.
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