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As a specialist alternative lender, our
streamlined lending process is tried
and tested.
Our Proven Strategy
Demand for UK short-term lending in the property market is strong and historically funding has been met by traditional banks, supported by alternative lenders. Specialist alternative lenders like P1 Capital have a simple and robust lending process, reaching decisions within days, thus enabling borrowers to proceed quickly and capitalise on financially sound opportunities with good margins.
The key to our success is lending
mezzanine finance to experienced
developers with a proven track record
of delivery within a defined criteria.
Borrowers are primarily business
owners and professional property
developers, and all loans are
secured over property and commercial assets.
Property lending will generally be in
areas with a sustainable property
market where there is a fundamental
demand for housing. This is currently in and around the South East and
Midlands, or areas close to other major
cities throughout England.
In the current climate we are highly
cautious on £2 million+ / trophy homes, or property hotspots that are not supported by our fundamental
investment principles.
We typically invest in developments
with a total sales value of £2 million to £15 million.
We work with other experienced
lenders, investing primarily in the lower end of the market from £2 million to £15 million residential development transactions.
Developers in £2 million to £15 million
transactions are highly professional,
with significant assets and experience, but their development money is often tied up in other projects.
Projects of this size can accommodate the best professional advisers and will often give corporate and personal guarantees.
Margins for these developers are
typically higher than those of a small
developer, meaning that there is
greater protection in the project in the
event of a housing market crash.
The liquidity in this end of the market is higher, meaning properties sell quicker.
Market conditions do change over time, and we are
committed to remaining flexible and open to lending
opportunities which present good risk-adjusted returns.
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