- What are your minimum and maximum loan sizes?
Our standard loan size is between £5m - £50m but on occasions we may consider larger applications, especially for portfolios. It is unlikely we would be interested in properties valued below £1m if they were part of a smaller portfolio.
- What length loans do you provide?
Currently between 5 - 20 years, although longer loans can occasionally be provided against a very long income stream.
- Do you offer variable rates?
No, but on rare occasions it may be possible to split a portfolio and provide a very small percentage of a loan on a one year variable rate. Typically this would occur if a customer is buying a group of properties and wishes to immediately dispose of a small proportion and would therefore not wish to be tied into a long term loan over those assets.
- Can I fix my rate before the loan is completed?
We allow a 7 day fixing period prior to drawdown on loans up to £25m, reducing to 2 days above this level. A fixing will only be accepted provided both the borrower and Aviva Commercial Finance’s lawyers are confident the stated drawdown date is achievable.
- What fees do you charge?
-
- Arrangement Fee - minimum of 0.50% rising depending on complexity and number of properties / tenants.
- Legal Fee - a sliding scale applies but our new business team would be happy to provide a quote at an early stage.
- Valuation Fee - the customer is responsible for the valuer’s fee for production of the valuation report.
- What if you repay your loan prior to the maturity date?
In addition to the capital and outstanding interest, an early redemption fee (ERF) may be payable. This will apply if we cannot reinvest the capital in the current lending market at an equivalent or better rate than the rate which applies on the loan. An explanatory letter giving more information is available on request.
- What happens at loan maturity?
We expect our loan to be repaid in full. If you wish us to renew the loan facility then you should contact our new business team at an early stage (at least 3 months before maturity) so that any new loan is ready to take effect from the expiry of the existing loan.
- What is cross charging?
A legal process whereby loans are linked together to give the lender wider powers of recourse. Hence if a shortfall was seen on the sale of one property this could be made up from surpluses seen on other loans within the cross charge. It is also a useful underwriting tool in that a shortfall in one loan’s cashflow can be supplemented by surplus rent from a property in another loan within the cross charge.
- Do you offer VAT loans when this is payable on the acquisition of a property?
No.