Property as an asset class within any investment portfolio always has its place, whether as part of a free investment portfolio or a pension portfolio.
Trafalgar Square can advise on where property investment can be purchased for capital growth or income, and then work to match purchase requirements to the lending options available.
PORTFOLIO RE-GEARING
As a property portfolio evolves, capital growth may create an opportunity to extract equity via re-gearing. Trafalgar Square will work closely with clients to identify the most effective way to do this, based on flexibility, timing and cost.
In some situations the portfolio re-gearing should be undertaken with some future flexibility in mind and, as such, Trafalgar Square can arrange Forward Buying Facilities for clients; this will then give them the ability to purchase new properties at speed.
SECURED LENDING
Where there is a first charge (the main loan or mortgage) on a property, and it is disadvantageous to move lenders or take a Further Advance, a Secured Loan can be added. Secured loans can be taken from 85% to 90% of the value of a property.
The advantage of secured loans is that they can be ‘status’ or ‘non-status’, and do not require legal fees or lender fees. A disadvantage is that they are generally structured on a capital & repayment basis over a 5 to 25 year period.
Trafalgar Square can advise in all secured-lending circumstances and arrange appropriately.
BRIDGING FINANCE
There are occasions where, for a variety of reasons, it may be necessary to provide temporary Bridging Finance over a short period. Trafalgar Square can organise this finance for clients with various Bridging Finance companies. The ‘bridge’ is normally based on 75% of the value of the property and typically can be put together in 5 to 10 working days. It attracts a set-up fee, monthly interest and an exit fee.
NEW & SELF BUILD FINANCE
Trafalgar Square will work with clients to find them lenders on all new-build or refurbishment property applications. Individuals are either building a brand new property or completely refurbishing an existing one. The options are to set up 75% finance on the purchase of the land or property and 75% of the building costs. The money for the build costs are paid in four staged payments and are normally accompanied by an architect’s planning schedule.
