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Holiday let’s: we can now use actual holiday let rental!

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Here we are at our Friday blog day again. I hope you’ve had a productive week!

As things start to open up we are starting to see more mortgage products appear in the market too. In the residential market this is most noticeable with the new 95% LTV products – a sign that confidence in is improving! And in the buy to let market we are seeing more options for holiday let’s. This year, with all the uncertainty around foreign travel, I think we will see an increase in demand for UK holidays. It will be interesting to see how that plays in the next few years – will we see more people falling in love with UK holidays and see their benefits?

This week I want to tell you about a new holiday let product we have available. For a while now we’ve not had great options for holiday let’s, but as things start to reopen and the chances of foreign holidays continue to look bleak lenders are spotting an opportunity.

Until now we have been able to lend up to 75% of the purchase price or current value  based on the 12 month AST rental figure. 

What this meant was the lender would only leverage it against a standard AST income, rather than the actual holiday figure, which may be higher.  Although you could use the property for holiday rental.

This can often work, but certain locations and property types don, and we’ve struggled with options for that until now.

A lender who used to be happy with holiday let’s (pre Covid) has now re-entered the market. There are some restrictions, the biggest being that the maximum loan to value is 70%; the rates, though, are lower in most scenarios to the options we previously had, so you may decide that 70% works.

The lender requires you to have a minimum income (between all applicants) and some previous experience. This can be with buy to let’s, it doesn’t mean you need to own a holiday let.

The big benefit is the income calculation. We are able to use 30 weeks income, at an average of the low, medium and high season rates. This can give a much higher maximum loan. 

Their minimum loan is £50,000, so covers all areas of England; the term can be from 2-30 years with interest only options available for the term. Rates start at 3.84% for a 2 year product at 70%.

As always, if you have any questions or scenarios you want to run through then please give us a call!

Enjoy your long weekend everyone.

Reasons To Change Agents

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Reasons for not changing your agent…… and why you should!

Hi everyone, yes, it’s Friday again already! I hope you’ve had a chance to enjoy a bevvy in the sun.

I think this lockdown has allowed a number of us to reflect on our current situations, and perhaps make overdue necessary changes.

I was talking to some like-minded individuals a while ago about my portfolio; it all started because I disagreed with the term “passive income” from a property portfolio. We all need to put the time in to build and manage our properties, but effective time.  We have 8 properties between myself and my partner, so not too many to manage.  And so the conversation started…

Mid-2017 I had had enough of my current lettings agent. Even though it was full management it required so much of my time to address things that weren’t being chased or dealt with by them.  I just had to change, I and my partner kept talking about it but there was always something that kicked it down the road.  As we have student lets, we always seem to be near the time for a changeover, so left it. When we finally made the decision to do something about I got diagnosed with breast cancer, which was early 2018, so there was no chance, but it also made dealing with them even harder and exhausting – and it was all my fault.  My excuses were always that it may not be better, wrong time and the old favourite of better the devil you know!

I had always had a good relationship with one of the guys working for the agent, but he’d left a while before.  I asked him, Manny, to keep my number….

September 2018. It could not have been a worse year, my Dad was also very poorly and we had taken a well-earned holiday in Sicily. I got a call from Manny asking if any of my properties were empty.  Two were (they were student lets at the time).  A couple of phone calls back and forth and some e-signatures later and both properties were rented out before I even got home.  Perhaps circumstances pushed me over the edge, but I have never looked back.

The new agent (Prominence Estates) are outstanding. They have given me my time back, and less pain at home!

But why do we procrastinate on important decisions that involve change?

I actually think it is a form of laziness, which comes in a variety of guises – comfort zone, poor excuses and just haven’t got the heart as a few examples. My friends and colleagues would not think I was lazy in the traditional sense, but I really couldn’t be bothered with the effort of that change, yet I was really struggling with the system I had.

All parts of the property business need good, decisive decisions.  Where a lot of us have full-time jobs time is our most precious commodity and should really be looked after.  Taking change head-on is important.

I have learnt from what happened and now focus on my power team.

Reflection on your properties and your power team is so important. Look to see what areas are too time-consuming (we obviously have to do some work) and consider other more efficient options.  Each one of the team has to count – estate/letting agents, solicitors, and brokers. You are paying for all their services, both time and cash. We often sacrifice cost for our time and therefore seriously underestimate our value of ourselves.

Check out recommendations, good service floats above the rest and poor service can’t hide for long. Listen to your gut! I ignored mine but thankfully Manny called me – the rest is history.

A good relationship should not be that hard, it really shouldn’t.

Enjoy your weekend everyone.

What can you do if you don’t have planning?

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I hope you’ve all had a lovely week enjoying our new freedoms, I know I have! It is tiring though!

This week I want to talk about what to do when a property doesn’t have the right planning for your plans. This covers a number of areas, and some are easier to overcome than others. There are a few solutions though.

Create a back up option 

This is probably the easiest solution to the issue. It works particularly well with conversions to large HMOs (when you’re not in an Article 4 area).  Large is classed as everything 7 bedrooms or more and requires a separate planning class.  Also semi commercial property that you want to convert to residential and can’t under permitted development. What it means is that you have an ideal scenario (if planning is approved), but also an alternative that could work without any change of planning class.

With the example of an HMO it could work as either a large HMO but also as a 6 bedroom. You will need to asses the refurbishment costs and the rental for both options and ensure that it works either way.  Some clients will do the works assuming they will get planning, and then use the extra space for a study or additional communal space if they don’t. Others convert it to a 6 bedroom and then wait for planning to be approved to do an additional extension or garage conversion for example. What you do will very much depend on the layout of the property and the timescales needed for either option.

With commercial property, this can mean keeping the existing commercial if you don’t get planning to convert it to residential. The rental again would need to work either way and you need to be comfortable with either option. Vacant commercial buildings can be difficult, so there needs to be a good demand for the commercial unit for the bridging to work, and then let out before we move it to a term mortgage.  We have had other examples of when this scenario works; converting semi detached properties back to a single dwelling, houses to flats and licensed HMOs in Article 4 areas looking to extend to larger properties.

A favourable pre-planning application 

There are instances where a back up option just doesn’t work. This could be where the costs or rental potential just don’t work financially for the back up option, or when there isn’t a back up option! This is usually for vacant commercial buildings but there are some other examples too.

In this instance, buying yourself some time to get planning is the ideal solution. This can be done through a conditional exchange or an agreement with the vendor. Where this isn’t possible, achieving a favourable pre application can really help. It really does depend on the overall case and it’s not necessarily a guarantee but it can be enough to complete on your bridging loan. Where a precedent has been set, or there’s been a previous application that has expired then it really does help.

Take advantage of  permitted development rights

There are plenty of areas where permitted development rights exist, and the rules have relaxed considerably recently.  Knowing what you can and can’t do is so important and can give you an edge over other investors.  We can complete without the full approval, as long as we know that is falls under PD rights.

Use alternative funds

The final option is to avoid mortgage finance entirely. This is not something that will work for everyone, but when you have the cash to purchase the property and are willing to take the risk, then this can help. Once planning is granted then we can look at refurbishment finance and can take advantage of the uplift in value that planning has created. There are clearly risks involved with this, so ensure that you have carried out your due diligence, and we are happy to talk about the potential exit routes before you purchase the property.

It’s really important not to get emotionally involved… you are in for a return in investment, keeping your eye on the prize can mean saying No!!

As always, we are happy to chat through any specific deals that you have and talk about your options.

The Avon Road purchase story continues……

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As some of you may remember, I bought a property in February to develop into flats.

My previous blog took you to completion, this is the continuation of the project.

The property was a 5 bed detached house with a 1 bed single storey annex attached on a great corner plot.  We We able to negotiate a 2 week delay between exchange and completion so we could get a head start on the very sparse refurbishment on both parts of the property.

By the time we completed on 19th February the Annex was finished.  Some of the house was started, but would need another 2/3 weeks to get that ready for letting out.

The priority was to get tenants in as quick as possible.  We need to add funds to the pot to cover the mortgage as well as planning fees and associated costs.  We used Open Rent as 3 company Directors are local so we could manage the process ourselves.  We put the property on before completion to minimise the time the property would sit empty; it really worked as the annex tenants moved in on the Sunday after completion – we also rented them the garage, so £850 per month on a standard AST.

The main house was a problem though as the drive was in front of the garage so has no parking at all.  Again, we advertised on Open Rent, but although we had plenty of interest at both £1500 and £1750 pm none of them passed the references.  That causes problems for our insurance so we couldn’t proceed.

Then a lady whose house had burnt down a few weeks earlier approached us.  She was currently staying in a hotel with their 2 children and sick mother, which was not ideal.  She had been asked by her insurance company to fins somewhere for 3-6 months while her home was renovated.  We pursued this, and were particularly interested as under COVID rules tenants can be difficult to move on.  This could potentially cause delays when we are ready to start the development so a tenant with a clear exit route was a winner.

We got in contact with the insurance company and negotiated a fully furnished price BUT that obviously meant it needed to be fully furnished – we only had 4 days (including a weekend)! The rent offered was £3650 per month for a minimum of 3 months.  Ideally we need more than 3 months, but it was important not to lose sight of the development prize and we were aware of the clear benefits this provided.  Any income towards the costs and mortgage are a bonus.  We have a mortgage with no ERCs so as soon as planning is approved and the tenants have moved out we can get on with the next stage.

My vlog, previously published, gives a bit more excitement than the written word – that said it was a manic few days.  The tenant was a dream as she really wanted as much upcycled goods as possible. I gained a lot of trust from how she dealt with the situation; we gave her a £200 budget for all bedding, kitchen utensils and soft stuff – she came in at £235.  Total spend, including 4 new mattresses, was £2168.

They moved in on the Monday evening.  As the monthly amount was under a serviced standard price, we insisted on 3 months up front; as they are totally incompetent, they tenant moved out of their hotel by 10am and the payment came through at 5.30pm. I can’t think of anything so stressful for the family .  The whole process wouldn’t have been achieved without the 4 Directors working so well together, and this really has shown me that I am business with a great group of people.

Food for thought…. Loss adjustors are always in need of accommodation.  As long as your mortgage provider is happy, it can be a lucrative income.  It would be worth finding contacts in the areas you invest to see if the timing works.  It is important to check the figures though, they want fully furnished and bills included, so it may not be worth it over a year’s contract.

Your partnership, work ethic and values are key to a profitable and stress free working partnership.  Everyone will have something to bring to the party and it is important to be mindful of that.  All of us have busy full time jobs, so effective and smart working is paramount.

The last few days of this property were genuinely hard work. I was able to build up such an open relationship with the tenant and found out she was a very community based person.  My close friend had lost her Mum days before they were due to move and whilst helping her pack (on the Saturday before the tenant moved in), I noticed a lot of disability equipment that was no longer needed. I spoke with the tenant and she was able to give all of it to her local elderly charity, which they desperately needed.  So a really positive end to it all.

A bit of excitement for the closing straights of lockdown.  Now to get the planning in next week and I will update you on that as we progress.

Enjoy your weekend.

 

BTL first or straight in to HMOs?

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This week we are looking at the pros and cons of both strategies; single let’s first or HMOs? It’s a question that comes up lots so here’s what I think!

 

Single let’s first 

 

The big advantage of this method is experience. Most lenders require you to have some rental experience before you go into HMOs or other more complicated properties such as commercial and blocks of flats. It also allows you to gain some rental experience and possibly some refurbishment experience too. You may want to do this first to feel more comfortable moving to bigger projects; to test the water and see if it’s something you enjoy doing. 

 

The main disadvantage is the money that you will end up leaving in the project in order to gain the experience. I have completed projects with clients that have enabled them to pull all their money out, but this is usually where they’ve added bedrooms within the existing floor plan or clever extensions. Usually you will end up leaving some money in, and that can then restrict how quickly you can move on to your next project. The other issue can be that you end up with a property that isn’t yielding as much as you would like and you didn’t really want a single let anyway! 

 

What about going straight to HMOs? 

 

The big pull towards HMOs are the rental yields. Of course this can apply to blocks of flats or serviced accommodation as well. This dilemma will apply to all of these properties to an extent as you need some experience for all of them.

 

What you need to decide is whether you want to pay an increase in the interest rate, to compensate for your lack of experience versus putting cash and cost into an asset which isn’t part of your long term plan.

 

In terms of interest rate for for HMOs, up to 5 bedrooms will be a slightly lesser rate than over 5 bedrooms. Both options will be higher than if you have some experience. In both instances the valuation will be a bricks and mortar figure and you will need to own your residential property. We can look at 2 year products to allow you to refinance to a more competitive product and hybrid valuation if that’s something that can be achieved. 

 

You will need to be looking for a property which doesn’t need extensive works (planning or building regulations) unless you have done something similar previously. You will require a management agent in place to look after the tenants. When you’re looking at refurbishment experience, you need to have done something similar previously, but this can include projects on your own home. 

What if you don’t have a residential mortgage? 

 

This is more tricky at the moment but there are still options. Single let’s are easier to place but there are more restrictions on affordability. For HMOs we need to think outside the box to find a solution, but it can be done! Some  clients choose to buy something cash and then refinance after they have owned it for a period of time and others use bridging to get around the experience. Looking at occupied properties can be an option too. 

 

When you don’t have the experience required, we need to balance this with something and this is usually a higher cost – whether that is using bridging or an increased interest rate on your mortgage.  This is a short term issue though, and once you have one property under your belt you have far more options.

 

We can usually find a solution somewhere though, so call with your enquiries and we can chat through the options.

 

Cash Vs. investor or bridging borrowing  – which is king..??

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Happy Friday everyone.   I hope you are all digging deep, it seems a lot tougher nearing the end.

As we work with so many property investors, the question of whether they should use cash or bridging to fund a project often comes up… so I thought this week’s blog would give both sides of the coin.

Your Own Cash

It’s easy to say it’s cheaper as you aren’t charged interest or fees – and at the moment when bank interest rates are so low it is tempting, but tying up cash stops it being used for something else, which will give a return. You could use your cash to fund two or three rather than just one project if you used bridging finance too.  It’s really important to always look at all options and what the net cost actually is. It all depends on how many projects you are planning on completing at once, and whether you have contingency funds if your project runs over time or cost. If you want to grow quickly then having cash available for the right project is important.

If you are buying solely with cash then another consideration should also be to use a solicitor that is used to working with lenders solicitors. If the legal work has only been looked at as a cash purchase then it can make it difficult when refinancing.  There is more work involved when someone is placing a charge on the property, and this can then cause delays at the refinance stage of its not been dealt with initially.

Using Other People’s funds

This really does keep your cash available for a profitable opportunity, and is the lowest cost borrowing option if you can access it at a reasonable rate given that there are no arrangement fees, exit fees and lender solicitor fees. Considerations would be:

  • Is there enough profit in the deal to ensure that your investors are repaid within the timescales you have agreed, and what’s your back up option?
  • You will usually need to borrow the full amount for the full time period, so your interest payment needs to be calculated ok this basis.
  • If you are using it with bridging, Lenders need to ensure the right people are on the application, so you need to have some experience to bring to the project before the lender will be happy for you to use investor funds.

Bridging Finance 

So after all that, why would you use bridging finance? The biggest advantage is the security; of having a mortgageable property that a bank will lend on, and a lender’s solicitor having seen the legals and being happy with the property. There is never a guaranteed exit to a term mortgage but it does help.

As we touched on before, it frees up your capital to look at multiple properties, or it can allow you to look at bigger projects with bigger profits. If your total spend becomes a 25% deposit (and maybe refurbishment costs) suddenly your budget is much bigger.

There are ways to mitigate costs too, especially when you’re looking at keeping the property:

  • If you are borrowing the refurb costs as well as the acquisition, then you will obtain the refurb costs in arrears as you spend them. This reduces the interest payable by about 40% and therefore can balance out the arrangement fees, exit fees and legal costs.
  • There are some bridge to term mortgage options, where there is a reduction in arrangement fees, valuation costs and/or legals when you use both products with the same lender. This can mean that you’re not paying out as much, and may therefore mean it’s a lower cost option to private investor funds for example.

As always, it does depend on your circumstances and the project you are looking at so please feel free to give us a call and chat it through.

Straight forward bridge or borrow the refurbishment costs too?

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This is a question which has come up a lot recently so I thought I would try and untangle some of the pros and cons of both options. It is very case specific but hopefully this will help you think about some of the other considerations rather than the interest rate alone!

When does a simple bridge work? 

The most common scenarios for when you most likely to use a standard bridge are:

  • When the cost of your works is less than about £50,000 as you will always need some working capital so it really doesn’t add much benefit to you
  • When you have the funds available for the refurbishment for little or no cost and don’t mind having this money tied up (ie. no other projects on the horizon!)
  • When you need the maximum loan (usually 75%) on day one

There are benefits to doing it this way round too:

  • The overall costs are lower, not only because you are borrowing less. There are QS or asset manager costs associated with refurbishment bridges and there can be an exit fee.
  • You will usually get a higher loan on day one as we can usually get to 75% and all the lender fee on top of this.
  • You are more likely to have the option to service the loan (pay the interest monthly) if you want to and are able to. This does increase the amount you receive initially.

So how does a refurbishment bridge work in comparison? 

A refurbishment loan allows you to borrow the costs of works in arrears as well as a percentage towards to the purchase.  You may end up with slightly less on your day one loan, but his does depend on the project and how the figures work. You will always need capital to start the works, and as you spend that it will be reimbursed. The drawdown interest is estimated at the beginning based on the lender’s experience of how draw downs generally work (amounts and timings) and then paid on redemption of the loan.  Your broker will know how each lender works in terms of payment for QS for example.

Benefits of a refurbishment bridge?

  • You can borrow far more money, so less for you to put in
  • You only pay interest on the amount you have borrowed and this is calculated daily. This is a big one! You don’t pay interest on the whole amount, only as you draw it down, which can save about 40% of the interest costs if you borrowed the full amount for the full term.
  • This can mitigate the other costs, such as an increased arrangement fee and QS or asset manager fees

Clients are often put off by an exit fee and QS, but looking at the overall cost is so important here.

So what types of projects work for refurbishment bridges? 

  • Heavy refurbishment projects such as conversions to flats or HMOs
  • Commercial to residential conversions
  • Large scale refurbishments of single dwellings

But what about planning I hear you say! There are instances that we can complete without full planning. It’s a case by case basis, but if we have a favourable pre app or an alternative use with the current planning then that can work. We can also buy the property on a bridge and then switch to a refurbishment bridge once planning is granted to save you money and add some additional time in.

As always, give us a call if you want to talk through your options. And don’t forget we’ve got plenty of time to get these sorts of cases completed before the stamp duty deadline.

Completions are still possible within the stamp duty deadline

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Happy Friday everyone. 14 weeks till the end of lockdown, so hang in there…

This week I’ve got a case study on an auction case I just completed.  Its very poignant at the moment given the extension to the stamp duty deadline until June and then September for lower value properties.  Either way, its something towards your SDLT bill!

As we all know, the conveyancing side of property purchase is carrying all the weight at the moment.  That said, this shows that with the right team, we can still achieve the completion inside the 28 days.

The auction was on 12th February.

We didn’t know if the SDLT discount would be extended and lawyers are close to breaking point.  When the client confirmed his bid was successful, he didn’t even  have a lawyer!  I’m not sure he was expecting to win the bidding as so much was selling for well over the asking price.

The client worked within the military and most days was out of any communication. Some late nights were required, and as you know we are more than happy to accommodate where we need to.

The earliest valuation appointment was 22nd February.

The important thing was making sure we had the right solicitors. And solicitors who trust the broker and communicate effectively. A bit of coercing was required to get my favourite go to solicitor to act for our client.  It makes such a positive difference when we know how we both work, so we can manage any bumps. So thank you Heinrich Ferreira at Pure Law and Phillip Adam at Hooper Burrowes Legal, it made all the difference!

Trusting the lender to be able to achieve this is also really important.  Our reputation is on the line, so whoever we choose has to deliver.

We also chose Appraisers over VAS to organise the valuation – again, they are good communicators and even chased over a weekend to get the report back.  They pushed and chased to get the valuation booked in when we needed it to be when we all the surveyors were so busy and had a limited availability.

The property was pretty straightforward, but the clients address history was not. Due to working with the military, combined with COVID, it needed a common sense underwriter to understand the situation and what proof was acceptable and available.  Mark Whitburn and Joseph Lethbridge at  Shawbrook we absolutely on it, despite high business volumes.

This was probably our smoothest auction case in a while.

As always, really think about the route of least resistance. Although we can always dip into the 10 days right to complete, it is not without cost, usually on the stress plate and something we rarely do or like to do.  Chasing a low rate can end up costing you in other areas

Any questions, as always, just call.

Focus on HMOs: Hybrid Valuation and Specialist Lender

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Focus on HMOs: Do you need a hybrid valuation and why do you want a specialist lender?

So here we are at Friday again – for many of us the Friday we have been waiting for! We’ve also had a solid budget this week, with an extension to the stamp duty relief which is great news.  With all this, as well as a clear roadmap out of lockdown, it does seem like there is some vibrancy to the market this week.

I’d like to talk about HMOs this week.  It’s a hot topic at the moment and we have had many enquiries asking about how to value properties and what rates we can do.  These conversations don’t always go the way clients expect though, so I thought I’d explain it in a bit more detail.  As you know we are big believers in looking at the bigger picture and not chasing low rates so this should help explain why.

Do you need a Hybrid valuation or will a bricks and mortar work?

Before we go on to hybrid and bricks and mortar methods, I just want to mention commercial valuations.  The words ‘commercial valuation’ are used a lot in the property world, and not always correctly.  The lender decides on the type of valuation we use, so we can’t request what to have; and no, it doesn’t always mean a yield-based valuation!  We would only be able to use a commercial valuation for HMOs where it is 7 bedrooms or more.  There will always be a ceiling price for a property in an area based on the location, size, condition and demand and that needs to be taken into account when looking at the yield calculation.  It’s really important that as investors you do the same to be as accurate as you can.

Hybrid valuations are also something that I don’t believe are explained very well a lot of the time!  It is something that some lenders allow, but it is up to the valuer to decide what that means and what the figure would be.  I have written a blog on it here, but what I wanted to talk about today is whether it is important to you and your property.

I am a big advocate of using a hybrid valuation, but there are only a few lenders who truly use it, and it is more expensive.  So do you need it? 

If you have spent a significant amount on your refurbishment, and the total cost (refurbishment and purchase price) is significantly higher than the bricks and mortar comparables then it is worth exploring, but if not then it may not be.  I have had examples recently in Suffolk and Kent where the bricks-and-mortar value is significantly higher than the hybrid calculation, but areas in and around Manchester, for example, have lent themselves to a hybrid model.  It allows you to pull out what you have spent on the property when that figure is more than the bricks and mortar.  We do sometimes see the elusive ‘no money left’ situation sometimes, but that is rare, especially at the moment.  When we have seen it is where the client has done really well negotiating on the purchase price and they have made the extra money before they have even started works – you can only get this back out on a refinance through.

So why would you want to use a specialist lender?

There are so many benefits to using a true specialist lender.  Their rates will be higher than the ‘specialist side of vanilla’ lenders, but as you know we are big believers in looking at the bigger picture:

  • They work with property investors regularly, so they understand that your income may be low due to carrying forward losses.  There are generally no minimum income requirements as long as the situation makes sense
  • The required documents that you need to provide are simple and straightforward.  There is no new list once the initial requirements have been satisfied!
  • We are able to speak to the underwriter directly, so if there are any issues then they are usually quickly resolved with a phone call.  We have a good relationship with our lenders so are able to pre-empt any potential issues a lot of the time and have a good idea of what will work and what won’t.
  • They are far more open to investor funds, which is a big deal at the moment.  I have mentioned previously that there is plenty of money within the property world, with private investors looking for better returns than they can in bank savings.  There are also plenty of bounce-back loans within the property investor community, and both of these options aren’t acceptable to many less specialist lenders.  Even having a BBL in your account could present a problem, so if you want to take advantage of these funds then you need to know where to go.
  • You have far more choices of how to structure your limited company in terms of SIC codes, the number of directors/shareholders, and group structures.  Often specialist lenders have restrictions around this that can cause issues with the way your company is set up.

As always, if there is anything you want to chat through then give us a call.  Enjoy your weekend – the evenings are lighter and things are definitely on the up!

 

Jackie’s summary: What a year it’s been!

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Happy Friday everyone… and it does feel like the one way ticket to ending lockdown is really on its way. It’s been a long time coming but finally there’s light at the end of the tunnel!

As we are now starting to get our vaccines and life is about to get back to normal, I though I would reflect on how the business has been for the last year.

Lockdown started on 23rd March and investors were super busy trying to get properties through and start buying new ones, we had a lot more at auction than usual too.  Perhaps having had Brexit for 3 years, followed by the election; COVID wasn’t going to stop you any longer. Usually, during a downturn, property and finance are hit hard; this hasn’t happened during COVID at all.

Apart from the initial valuation issues and lenders pausing lending for a short period, it bounced back very quickly. For those of us who remember previous economic problems, it has taken a lot longer for normality to resume historically so I think this took us a bit by surprise. The days of the last lockdown full of confusion of what we can do seem like a distant memory thank goodness.

What has inspired me through this is just how inspiring our clients are. It’s very easy to batten down the hatches when things get tough, but the courage and energy of our clients really has blown me away.

We have funded everything from the vanilla refinance, through small refurbishments and all the way to full on development – and everything in between. There were challenges with each deal, and it’s been our solid relationships with lenders which has enabled us to deliver on what our clients have needed. Each day brought new lender decisions and criteria so it really was a tricky time!

With all the issues from furloughed staff, lack of seeing and speaking to people, then coping with part time staff around home schooling (of which I helped with), it’s certainly been one of my most challenging years. There have been so many positives though, for example I have never had so many conversations with underwriters and lenders. Perhaps we all needed more than a quick chase up conversation.

As you will know from my previous blog, it has also given me the push I needed to start my own development. As busy as the year has been, I have spent more time listening to people and being mindful of just what we can still learn. Having something else to focus my time in has been really important, and I’ve thoroughly enjoyed it so far – although I’m sure the hard work is to come we haven’t started the development yet!

The lenders have also become so competitive. After the initial drop out of some, so together with the bullish attitude of others, we are able to now offer better deals than ever.  Also, by spending the time in lockdown conversations, we have really benefitted by having sensible discussions that can help with getting a deal across the line or working through getting a better LTV.

Overall, this year has really shown us just how amazing our industry is at bouncing back – both from a lending point of view and investors. We feel so privileged to be part of the industry who have been able to take advantage of this situation which has caused so many problems for so many. I really hope that this year will change the way we view situations too; we are all becoming more understanding of each other’s difficulties and challenges and I hope that we will continue.

There are always winners and losers in tough times.  I really believe that the tenacity of the investor community has shown just how resilient we are.  Onwards and upwards to June 21st and stay safe.