Why preparation matters

Good information helps a lender understand the opportunity.

Specialist property finance is often used for transactions that need more explanation than a standard mortgage. The property may be commercial, semi-commercial, short lease, below market value, works-led, title-led or time-sensitive. The lender has to understand not only the property, but also the borrower, the funding requirement and the route to repayment.

Preparing early does not guarantee approval, but it helps the review move more efficiently. It also reduces the risk of important issues appearing late in the process, when time and costs may already have been committed.

Borrower information

Start with who is borrowing and why them.

A lender needs to know who the borrower is, how the ownership structure works and what experience supports the transaction. If the borrower is an individual, prepare a clear summary of property background, current assets, borrowing and investment experience. If the borrower is a company, prepare company details, director and shareholder information and a short explanation of the company’s purpose.

If there are joint venture partners, connected companies, family investors or multiple applicants, explain the structure early.

Property information

The property is the core security.

Before applying, gather the basic property information. This usually includes the address, property type, tenure, current use, planning position, lease or tenancy details, title information and any known legal or physical issues. If the property is commercial or mixed-use, rental income, lease length, tenant strength and use class may be especially important.

If the property needs works, prepare a realistic schedule. That should include what needs doing, who will do it, how much it will cost, how long it may take and what value or income position is expected after completion.

• Address, title and tenure.
• Current value, purchase price or refinance position.
• Tenancy, lease or occupancy details.
• Works schedule and costings where relevant.
• Valuation or comparable evidence where available.
• Photos, agent details or professional reports if useful.

Funding requirement

Be clear on the amount required and what it covers.

A useful application separates the different parts of the funding requirement. The lender should be able to see the purchase price or refinance amount, any works requirement, fees, interest, legal costs, valuation costs and borrower contribution.

Where borrower contribution is required, evidence should be ready. This may include bank statements, sale proceeds, investor funds or company funds.

Financial documents

Prepare the documents that explain your position.

Document requirements vary by case, but direct investors should expect to provide information about income, assets, liabilities, bank statements, property portfolio and source of funds.

Exit strategy

Know how the loan is expected to be repaid.

Short-term finance should have a clear route to repayment. The exit might be sale, refinance, title split sale, refinance after lease extension, refinance after works, or another structured repayment plan. The lender needs to understand not only the preferred exit, but why that exit should be realistic.

• Primary exit route.
• Evidence supporting value, rent or saleability.
• Timing and steps before repayment.
• Fallback option if the first route is delayed.

Application readiness

Use the documents before you need them.

Finanze Capital provides direct-client downloads including a facilities guide, manual loan application form, assets and liabilities template and property portfolio template. These can help you organise information before starting the online quote route or before discussing a more complex case.