http://www.nmproperty.co.uk/pages/services/news.asp/ Classic Charter News - as it happens. en-uk Mon, 16 Aug 2010 15:30 GMT Fri, 17 Sep 2010 16:15 GMT Communicant nigel@nmproperty.co.uk (Nigel Morgan) rikki@communicant.co.uk (Rikki Noble) http://www.nmproperty.co.uk/pages/services/news.aspWith senior debt for speculative residential and commercial developments remaining difficult to access NM Property Finance now have access to a new, innovative product which not only gives lenders a guranteed exit but also enables developers to access part of the scheme's GDV to use as equity from day one.

How it works:-

A development is broken down into "bite size" parcels e.g. Residential - individual flats or houses - Hotels - hotel bedrooms - Commercial - speculative elements must be able to be split into small parcels. Each parcel is then sold to an American Fund's in-house client database of some 50,000+ active investors residing in UK and Western Europe. (Lenders prefer this approach as it spreads their risk.) Each investor exchanges contracts on their unit and pays a deposit of between 10-25%. This deposit, if insured for specific performance, is then available to the Developer to be used as equity.

The Developer remains in control of the selling process. Even though the Developer may have a GDV target he is free to sell above or below that target provided the senior debt lender and the Investors deposit + rolled up interest and any costs are redeemed. The full balance is then for the benefit of the Developer. If the Fund has to complete as a last resort then it will limit its exposure to paying off the Senior debt, the Investor's deposits and their costs.

What Qualifies? -

Projects with minimum GDVs of £10m including, well located residential developments with maximum individual unit prices of £500,000 - Hotels let on fully repairing and insuring leases or strong long-term management contracts - Commercial developments - Income producing portfolios, particularly Bank discounted sales.

Who is the Fund?

Its is based in America with a European office to look after retail sales. Thery have been established for six years and to date have placed $650m for projects mainly in the USA.

What does it cost?

The Investors look for a return on their deposit equivalent to 30% p.a. rolled up. In addition the Fund charge a fee which is equivalent to a small percentage of the projects GDV dependent upon the level of deposit required.

If you think you have a project that qualifies and think the structure might work for you, e-mail me for a simple deal questionnaire for you to complete or give me a call. Mon, 16 Aug 2010 15:30 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=12 Residential Development Speculative residential development funding is readily available from a number of banks to assist with housing and small apartment schemes in good locations. Lenders are looking for developers with demonstrable track records and strong financials. Funding can be up to 60% of GDV but this will be at a premium, more typically 60% of land value and 60% of build costs including professional fees up to a maximum of 50% GDV is the norm. Pricing from 3% over base with 1.25% arrangement fee. Bridging Finance Bridging is basically short term property funding. It is a fast-track way to access funding with the smallest possible level of red tape. The Mon, 16 Aug 2010 15:48 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=17 http://www.bridgingandcommercial.co.uk/newsstory?id=1166&type=newsfeature&title=ex-dragon_puts_propeEntrepreneur Rachel Elnaugh watched her millionaire status fall to the wayside in 2003 when her £25 million business, Red Letter Days, collapsed spectacularly. The business worked by providing vouchers to novelty and often unusual days out, but accounts filed in 2003 showed the firm had made a £4.8 million loss and her bank, Barclays, worried it wouldn’t be able to redeem all the outstanding unpaid vouchers. As a result Barclays put £3 million in an untouchable bond and when a winding up order was issued by a supplier, Rachel could do nothing but watch the business she had started from scratch at 23 years old collapse. And as if that wasn’t bad enough, Rachel then watched fellow dragons Peter Jones and Theo Phaphitis step in buy the remaining assets. But now it seems the entrepreneur has turned her misfortune on its head by becoming a motivational coach with a bestselling book about her business failure under her belt. And now she is ready to move closer to London and take advantage of the business opportunities there. Rachel is putting her £1 million home in Bakewell on the market and has her hopes set on somewhere within the London commuter belt. Speaking to the Daily Mail, she explained how when she originally moved to Bakewell it was a much-needed break away from The Big Smoke. “When I first moved here I breathed a sigh of relief,” she said. “I spent the previous six months working non-stop to try and save my business and when the family came it was tough, but at least I could take time off again to be with my family. “Over the past two years I have been spending an average of two nights a week in London. It’s a two-and-a-half hour journey and Chris also commutes sometimes so we began to question if it made sense living up here.” Rachel’s property is a five-bedroom, multi-level house built on the top of a hill with ‘stunning’ views. However it has been on the market for a year and still hasn’t sold. What’s more, Rachel has put it on the market for the same price she originally bought it for in 2007 and refuses to come down in price. Having originally bought the property for £300,000 off its asking price Rachel believes it’s worth what she paid three years ago. Rachel and her husband Chris Little have other investment properties too; a two-bedroom apartment, bought by Chris for £149,00 that he rents at £750 a month and a £390,000 holiday cottage let by Rachel for up to £1,200 a week during the summer. Mon, 23 Aug 2010 10:39 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=18 http://www.bridgingandcommercial.co.uk/newsstory?id=1167&type=newsfeature&title=husband_and_wife_teaIt is thought around twenty people gave former hotelier Nigel Andrews the money to invest in building apartments in Turkey, after being encouraged to pay deposits for properties that he promised would quickly rise in value once completed. Nigel Andrews, 51, who hasn’t been seen since June 5, is a former nightclub owner whose club, The Vaults, shut in 2003 owing creditors £700,000. The Aberdeen club was set up with his brother Lionel, but shut after only five months, after which time the brothers fled to Spain. The Bank of Scotland has called for the brothers to be made bankrupt. Now Nigel Andrews is thought to be in Marbella, from where he has been running Royal Resorts Turkey, the property firm is reportedly building the luxury apartments in Turkey. The firm’s resorts include Paradise Bay in Akbuk, a development said to be planned on land that is banned from development. Another resort allegedly planned for development was the Manzara Resort in Kusadasi, which was to have seven blocks and 190 apartments, so far neither development has been started. Spanish police and Turkish lawyers are now pursuing Mr Andrews and his wife, Margaret, after scores of angry investors came forward complaining that they have yet to see any sign of their investment being put to its intended use. Speaking to the Express newspaper, Tony May, 69 from Aberdeen, is a pensioner living in Malaga. He paid £58,000 as a deposit for one of the 190 flats said to be built in the Manzara complex. However, he’s seen no developments and has now made an official compliant to the Spanish authorities. Speaking to the Express, he said: “It is just beginning to sink in that I have lost all this money. “My wife, Andrea, is younger than me, and we have a young son, Ralph. This investment was supposed to help support them when I am gone.” Mr May, a former pilot, alleges he was made to hand over 40 per cent, £58,000 of the overall asking price in order to ‘secure’ the deal. His contract stipulates that the remaining £68,000 would be paid once the apartment was completed. Also in the contract is a ‘guarantee’ to rent the property for five years, and then a promise to buy the property back for 50 per cent above the amount originally paid by Mr May. Mr Andrews also said he would look after the pensioner’s timeshare in Spain for him. It is thought the husband and wife team have been selling apartments from multiple offices in Marbella, Spain and Bodrum in Turkey. At one point they drove a car with Bulgarian number plates and some investors’ worry that they have fled there and are in hiding. Mon, 23 Aug 2010 10:42 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=19 http://www.debtmanagementtoday.co.uk/newsstory?id=884&type=newsfeature&title=fraud_alert_for_borroweThe fraud is targeting those who have taken out a personal loan and involves the victim being sent a letter from a company with a similar name to an existing lender, or loan firm. The letter states that the recipient has missed a repayment deadline and now owes the original debt plus more money. However Action Fraud is urging people to be on their guard and to read their mail carefully, as some victims have already sent the requested money to the fraudsters, before finding they still owe the original company. It is thought that the fraudsters are targeting heavily indebted areas. According to the organisation, a number of victims contacted Action Fraud in just one day and the matter is now with the National Fraud Intelligence Bureau (NFIB). Action Fraud takes crime reports from victims of fraud and provides them with a crime reference number. This information is then fed to the NFIB – run by the City of London Police – for analysis and possible police action. Mon, 23 Aug 2010 10:44 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=20 http://www.debtmanagementtoday.co.uk/newsstory?id=883&type=newsfeature&title=no_room_for_complacencyArrears and repossession levels are expected to be below 2009 levels at the end of the year, rather than above as previously forecast. The number of Britons expected to be in serious mortgage arrears at the end of the year has also been downwardly revised, from 205,000 to 175,000. The number of predicted repossessions has been changed from 53,000 to 39,000 – which is 0.34% of all mortgages taken out in the UK. Repossessions stood at 47,700 in 2009. The fall in predicted number of repossessions has been attributed to historically low interest rates and unemployment levels remaining relatively stable at around 2.5 million, however the CML has warned that the prognosis is uncertain for possession trends. The forecast stated: “There is no room for complacency as arrears levels are not improving for a group of consumers who have been given extended forbearance by lenders. “We expect financial pressures to remain elevated for some considerable time. Commenting on the forecast, debt expert and director of Atlantic Financial Management, Kevin Still, called the revised figures ‘encouraging’. He said: “The CML report clearly shows that they are hedging their bets when it comes to 2011 and beyond with so many variable factors affecting homeowner finances. “As a debt solution provider, one of our first priorities is to determine whether a household with serious debt problems can pay the mortgage. If there are already mortgage arrears then can they afford a repayment arrangement to clear the arrears with debt relief offered on their unsecured debts.” He added: “The housing market remains very fragile and the lending outlook is quoted as being subdued for some time. Viable debt solutions are likely to Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs) for those with little or no equity in their property. Neither put the home significantly at risk, but both provide a predictable and disciplined way of getting finances back under control.” The CML has also said that it hopes the coalition government will not reverse the ‘welcome’ trend this year by removing support mechanisms that work for consumers. Mon, 23 Aug 2010 10:48 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=21 An established International Bank based in London has just launched its new property finance team and offers an exciting new product for investors in residential property.

The basic underwriting criteria is as follows:-

Residential investment property/portfolios only.
The property/ies must be located within London.
Maximum Loan to Value 60%.
For loans under £2.5m the loans must fully amortise over 15-years.
For loans over £2.5m the loan can be split with 50% being interest only and the balance amortising over 15-years.
For debt over £2m with a maximum LTV of 55% interest only is available for up to a 3-year term.
Rental income must service the debt by 125%. If estimated rental income does not cover the repayments, a cash deposit (for the difference of 125% debt servicing against rental income, per annum), will be required.
If borrowing is through a Company (for example a Special Purpose Vehicle "SPV"), a personal guarantee will be required from the beneficial owner(s)
Fees and margins by negotiation and will be based on the merits of each case. Mon, 23 Aug 2010 12:33 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=22 http://bedandbreakfastwinchester.com/2010/04/funding-success-for-homes-project/Southampton based brokerage NM Property Finance are delighted to announce that they have negotiated speculative residential development funding for its London based clients, Compton (UK) LLP, for a stunning development of 6-houses in the village of Compton near Winchester with a combined end value of £6.5m.

Nigel Morgan, Principal of NM Property Finance says “We are very pleased to have organised this funding at such advantageous terms in a very difficult market which clearly demonstrates that for first class projects in prime locations for experienced borrowers Banks are being supportive, in fact we had two major lenders competing!!”

This prestigious development comprises the construction of three stunning 6-bed detached houses, a beautiful 5-bed barn style detached house and two thoughtfully designed 2-bed terraced houses nestled in a mature two acre site overlooking farm land in the beautiful village of Compton just 2-miles from the centre of Winchester. Construction work has already started and is expected to be finished in Feb 2011.

Tim Langley of Compton (UK) LLP says “We are delighted that NM Property Finance were able to secure such competitive terms for us in refinancing this development, which we calculate should save us about 8% of the financial cost of the project. Their service was exemplary, from identifying potential lenders, through to concluding the transaction”.


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Notes to Editors

1. For more information contact Nigel Morgan - m. 07542 595836 t. 020 7193 6552 e. nigel@nmproperty.co.uk

2. NM Property Finance is a specialist property finance brokerage with many years of experience in procuring senior debt, mezzanine funding and equity for real estate transactions. NMPF started trading in 1999 and sources on average £40-50m of finance per year for its property clients.

Further details can be found at www.nmproperty.co.uk

3. Tim Langley of Compton UK LLP can be contacted on t. 020 7224 2356 or e. timlangley@andbury.co.uk Mon, 23 Aug 2010 13:06 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=23 http://www.debtmanagementtoday.co.uk/newsstory?id=891&type=newsfeature&title=uk_s_worst_bank_for_cusBanking groups on the favourable end of the scale include First Direct, Smile and One Account, which all got the stamp of approval from consumers.
However, Santander was one of the banks trailing in last place in terms of customer service, and was also voted the worst savings provider.
Halifax, Bank of Scotland, Lloyds TSB and Cheltenham & Gloucester were other banks who failed to merit glowing reviews.
First Direct won an overall score of 82%, and was voted the top provider for current accounts, savings and mortgages. One Account and Smile scored 82% and 79%, respectively.
On the other side, Bank of Scotland trailed with a lowly satisfaction rating of 43%, Halifax came in with 46% and Santander 47%, as well as earning a score of just 39% for its savings accounts.
Spanish banking giant Santander has come under fire in the past for poor customer service, and has languished at the bottom of customer satisfaction polls before.
Kevin Still, debt expert and director of Atlantic Financial Management, said that in the current climate, customer service will be judged on whether a bank provides support when it is needed.
He continued: “Treating customers fairly can be very loosely interpreted by some banks, especially when you fall into financial difficulty or have debt problems.
“Santander has been very aggressive in its acquisition programme, trying to integrate a number of brands with very different approaches to arrears management and debt recovery. It is easy for a client to now have multiple relationships within the group without consciously knowing it and this can be risky going forward.”
Peter Vicary-Smith, chief executive of Which?, added: “Time and again, the big high street banks are found to be lacking when it comes to good customer service. People who are unhappy with their bank must vote with their feet and move to a better financial provider.” Fri, 27 Aug 2010 11:14 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=24 http://www.debtmanagementtoday.co.uk/newsstory?id=899&type=newsfeature&title=cold_calling_claims_hanThe claims handler – which appeared to be registered in central London but regulated by the Ministry of Justice in Swansea – was challenged by the Advertising Standards Agency (ASA) last June for sending text messages to private individuals’ mobiles, stating: “Due to new Government legislation you can now get your debt wiped out. Call Claim Management UK now on 01792 462525.”

The company was banned from using the text message advert by the ASA, who also found that it breached the CAP Code.

Amongst Claim Management UK’s debts, £7,867 is owed to eight clients, with at least 10 more former customers reported to be owed nearly £9,000.

Consumer forums are awash with horror stories of the claims firm, with some victims claiming they paid £2,000 to get their credit card debts “written off”, only to never hear from the firm again.

Others say that the claims company “cold called” their mobile phones from a number which appeared as another mobile phone number, before asking them about their debts.

The last post on one consumer forum, left on August 3 2010, states: “Claim Management UK are a scam! They led me to believe they were gonna wipe my debts... I paid the money and got nothing in return!”

The company’s website and telephone number are both down, and the former directors of the company, Christopher Trainor, 30, from South Wales, and James Bradley, 29, from Swansea, were not available for comment.

Claim Management UK is the latest in a string of claims management firms to fail so far this year, with the sector's biggest casualty being Cartel Client Review, which collapsed in March. If you have been negatively affected by the closure of one of these companies Debt Management Today is running a campaign for brokers who have referred clients to claims handlers and not had the desired results.

In conjunction with debt solutions firm EuroDebt Financial Services, this campaign will see a licensed debt advisor contact you and give you more information about where your client can turn to get their finances under control. To sign up to the campaign click here. Fri, 27 Aug 2010 11:20 GMT http://www.nmproperty.co.uk/pages/services/detail.asp?newsUid=25