Funding
Our business model is simple, flexible, transparent and we believe the way to open doors for many housebuilders looking to unlock the potential of their business.
Every development is unique; and every housebuilder’s finances are different. Therefore each funding solution we create is tailored to your situation and the requirement of a particular scheme. Flexibility is key to unlocking the opportunity.
The breadth of options Wolsey can offer is wide ranging, structured around:
- Senior Debt funding
- Mezzanine funding, or
- A blend of senior debt and mezzanine funding
Senior debt is difficult to obtain and the few active lenders are imposing strict limits of the levels of lending, typically at 60% of loan to cost and 50% loan to value at best. This challenges even the best developer, who may have cash to invest, but not at the levels required.
Wolsey will look at the total funding requirement and make a proposal focusing on the best funding options.
This may simply be a proposal for Senior Debt lending. Or if senior debt is already in place, a proposal based on Mezzanine lending, which, in a nutshell, is the provision of finance that enables the gap to be bridged between the limit of the senior debt lending facility and the equity required from the developer.
Or, it may be a combination of both senior debt and mezzanine lending that is required to fund a scheme. We can provide any of these solutions.
How it works
Wolsey has the funding resources to deliver on all levels and is currently looking at total debt provision up to 85% of build costs.
The adjacent graph illustrates how a funding arrangement of senior debt, mezzanine lending and developer equity may stack up.
Once the lending facility is agreed with the developer, the funds would be released in a co-ordinated and staged programme to meet the scheme’s cashflow requirement.
Lending Criteria
Wolsey will look at residential schemes upwards of £2 million GDV.
They may be individual schemes, or portfolios of schemes with a minimum of at least 80% residential use; both apartments and houses, or a mix, and multiple units of 3 or more.
While the south of England is the strongest market, we will look at schemes across the UK in areas where it can be demonstrated that there is an active residential market.
Contact Us
If you have an appraisal within the above parameters call us for an initial discussion.
Or alternatively, if you would prefer, we have an Enquiry Form which you may wish to complete. Your enquiry will be directed to the appropriate regional Director who will respond directly to you.