News

As we near the end of Q1, and with many trying to complete their transactions ahead of the SDLT changes, it has certainly been an interesting start to the year.

At Omega we have the benefit of seeing enquiries of ever increasing range in type and size, specific requirement and scenario.

What we’re seeing in the specialist property and commercial market

• Elongated Sales Process: Specifically that in the residential market, leading to a significant increase in regulated bridging loans as the sales process and more specifically legal process lengthens.
• Self-Build Options: More clients are exploring self-build alternatives, showing a growing interest in clients building their own homes, whether a grand design or making their cash stretch further.
• 100% Funding: Opportunities for full funding of asset value are available, real appetite exists in the care sector, recent cases including dental practices and care homes.
• Tenant Purchases: Tenants buying premises at a discount to market value, borrowing based on market value (90% of Purchase price available) meaning a lower deposit requirement.
• Finance for Conversions and Renovations: There continues to be a spike in requests for funding to support property conversions and renovations. This includes pre-planning purchases and change of use. Financing options are accessible regardless of clients’ previous experience.

Finance for Conversions and Renovations

Our team continue to see a good flow of enquiries from partner networks whose clients require property development finance for conversions and renovations of properties of all shapes and sizes. There is a noticeable rise in requests for property conversions or scenarios where finances are needed for pre-planning purchases and changes of use. Available terms can depend on property type, enhanced value, and other variables, but financing options are accessible whether it’s the client’s first project or they have completed multiple schemes previously.

One recent case requiring conversion finance in London at 90% of all costs.

Non-Standard Construction and Development

The appetite for creating distinctive properties that stand out in a crowded market remains strong. Many property investors are considering both traditional investments and development schemes, as well as alternative projects. Omega has strong relationships with lenders who can offer terms for non-standard construction projects and development schemes. Despite the challenges of financing self-builds, some lenders specialise in funding unique schemes such as barn conversions or other non-traditional developments.

It will be interesting to see what Q2 and the end of the financial year bring. We will continue to ensure we react to changes, demands and lender appetite, to allow us to offer our partner networks commercial finance options throughout the UK that support all types of development projects and maximise cash flow.

 Refurbishment Facility

75% against purchase price / day one valuation + 100% of the cost of works

Rate reductions across the portfolio and specialist residential investments, semi-commercial assets and commercial investment properties.

Major pricing reductions up to 0.45% for portfolio landlords & specialist residential investment:

• 2 Year <65% LTV now 4.29%
• 2 Year <75% LTV now 4.39%
• 5 Year <65% LTV now 4.71%
• 5 Year <75% LTV now 4.80%

HMO, MUFB, Student Lets and other specialist residential property investment:

• 2 Year <65% LTV now 4.90%
• 2 Year <75% LTV now 5.00%
• 5 Year <65% LTV now 5.27%
• 5 Year <75% LTV now 5.36%

The lender operates on a restricted panel, keen to support property investors with transactions from as little as £100k up to full portfolio refinances.

Semi-exclusive products available for Commercial & Semi-commercial assets

• • Commercial from 6.24%
  • Semi-commercial from 5.54%
• Products based on loan size, with lower rates for larger loans
• Improved rates based on EPC rating