Loans For Property

Loans For Property

Minimum Loan of £250,000

Typically our borrowers have been seeking to raise capital elsewhere but without success, or have been offered unworkable terms.

We encourage individuals and businesses with suitable security to apply for an Orchard Secured Capital (OSC) loan.

Ready to Submit Your Proposal?

Having been frustrated by the restrictions of the current finance markets, you are happy to present your project to our Finance Assessment Team.

Successful Applications Have 6 Distinct Stages:

  • Our Basic Due Diligence – Can we probably help you?
  • Fact Finding with you – Understanding your requirements and status.
  • Goals Based Planning - Satisfying your borrowing need in a way that works for you.
  • OSC Offer Of A Loan – Issuing your loan documentation.
  • Granting your loan – OSC advance the funds via our solicitors.
  • Staying on track – Future Reviews, monitoring & final loan repayment.

Goals Based Property Finance Planning:

We are looking to facilitate individuals and organisations that are borrowing funds for the right reasons. This includes, but is not limited to; purchase, increasing or maintaining the value of an asset, protecting a revenue stream or supporting a planning gain.

It is important that:

  1. Interest repayments can be easily maintained.
  2. Any facility being granted is proportionate.
  3. The facility can be settled in full at the end of the agreed term.

Responsible Borrowing:

Borrowers will take responsibility for the money they are seeking to borrow.

Borrowers will have an asset and will be prepared to offer the necessary legal security required by OSC and their Investors.

Property Valuation:

The borrower agrees to have the property asset being offered as security, valued by a suitably experienced and local Chartered Surveyor, who will report to OSC on a re-sale value of the property asset and its suitability as loan security. The OSC Property Finance Team will then review the report and make any necessary conditions clear to the prospective borrower.

To continue to preserve the value of the asset, the borrower will commit to and attend all scheduled future property reviews as requested by OSC.

For valuations of assets beyond the capability of a local Chartered Surveyor, a suitably qualified individual with specific relevant expertise will be sought nationally.

Interest Rate:

The client agrees to a fixed interest rate for the term of the loan. Available interest rates are set according to the OSC assessment of ‘Loan Security’.

Interest Payments:

The borrower will agree to service their loan in accordance with their specific loan agreement.

Administration Fee:

Initial Fees for standard matters – To cover the cost of administration the initial fees applied to applications will be £345.

In the event that an application is complicated and additional due diligence is required, the cost will be quoted for in advance and agreed with the borrower before any work is undertaken.

Written Agreements:

Clients are fully aware that Orchard Secured Capital will produce the necessary legal documentation that commits a client to their agreed repayment schedule. This may include but is not limited to a loan agreement, a personal guarantee, a legal charge (where permitted).

Paying off your loan:

Borrowers have a property investment asset that OSC is prepared to accept as suitable security. The loan secured against the asset will have a Fixed Term and a defined end date. Therefore, the borrower must have a clear strategy for ensuring that the loan is fully settled before expiry of the Loan Term.

What are the safeguards for borrowers?

We safeguard our borrowers by having various measures in place. This includes but is not limited to:

  • We intend to avoid unnecessary arrears and defaults, so every borrower and their loan application will be assessed by our Property Finance team to check its suitability
  • To avoid unnecessary future stress, clients borrowing money will be assessed for,& will need to demonstrate clear affordability, throughout the proposed term of the loan.
  • We aim to protect OSC’s and our client’s interests and commitments by clearly documenting the agreed arrangement using loan documentation that has been prepared by our solicitors.
  • To facilitate clear repayment strategies, we ensure at outset that all borrowers have suitable income to cover the loan repayments.
  • We will register the required legal charges to underpin the borrower’s commitment to the loan.
  • If problems do arise we have a committed support network to discuss difficulties that arise and to attempt to find solutions.
  • In arranging the borrowing and preparing the loan structure, Orchard Secured Capital and its Directors have taken advice from various professionals including solicitors, accountants, compliance consultants and financial advisors.
  • To maintain the highest standards we act in accordance with the full requirements of FCA Regulation as applies to the ‘Operation of an Electronic Platform for Lending’.

A Guide To Required Security From Borrowers:

  • OSC will require a legal charge over the property asset being offered as security, in favour of the Lender Group.
  • OSC will require all charges to be recorded on the appropriate register e.g. Land registry for property, Companies house for Debentures and charges over shares or specific loans.
  • OSC will require the completion of comprehensive legal documentation including but not limited to Loan Agreement, Personal Guarantee & Power Of Attorney.
  • Actual security requirements and the necessary charges can be discussed with OSC prior to proceeding.

What are the risks to a Borrower?

All risks can lead to an increase in debt and the potential need to issue legal proceedings or to repossess property assets. Examples of such events may include but are not limited to:

  • Borrowers defaulting on payments and falling into arrears may suffer the necessary additional costs of recovery.
  • If the original asset charged for security has insufficient value to settle the outstanding loan at the end of the term, then recourse to the borrower may be sought to fully discharge the debt.
  • The costs of issuing legal proceedings can often be high and will be added to the borrowers account.
  • The cost of enforcing legal action can also be high and will be added to the borrowers account.

* Please read your individual detailed loan agreement & understand all potential risks prior to proceeding with the loan.

Risk Warning & advice:

Whilst we expect and intend our loan documentation to comprehensively detail the penalties for defaulting on the loan arrangements, we encourage clients to take independent property, legal and financial advice from suitably qualified individuals (solicitors, accountants, tax advisors etc) to support their understanding.

Regulation:

OSC is regulated directly by the Financial Conduct Authority (FCA) to operate an Electronic Platform for Lending. OSC does not offer or advertise Lender or Borrower opportunities concerning regulated loans.

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