17 May 2019
Moody Venture Capital has funded residential property schemes since 2002. During that time many successful projects have been completed through England and Wales.
Our hands-on approach enables MVC to respond quickly to enquiries and thereafter progress the schemes as speedily and efficiently as possible. We are a small team and although we require the scheme preliminaries to be completed to our satisfaction we do not rely on various levels of in-house committees and boards to make lengthy/protracted decisions. We can therefore conclude the due diligence in a quick and effective way.
Our funding criteria is based on a figure of 65% of GDV although this can be increased to 75% depending upon the margins of the project, location and developer experience.
An example of our terms can be found on the MVC website. Typical costs are site valuation visit £1,000. Commitment Fee 1.5% of total funding required. Interest at 7% p.a. rolled up quarterly and a variable exit charge based upon the funding levels required. Unlike other funders, there are no charges for undrawn funds or early redemption settlement. Terms are flexible, negotiable and transparent. We will consider first time developers although in these cases we like to see a separate construction contract from a recognised builder. We consider finance for new-build houses and apartments and cover most of England and Wales. We also fund refurbishments and renovations – our funds are provided in-house without any external borrowings.
Our payment system enables us to provide funds within 24-48 hours from a surveyor visit for construction certifications, the object of which is to negate any issues with cash flow.
As we are a small team, developers are able to contact us with an immediate response without the hierarchy that some funders insist upon.
For an initial indication of terms we require:
- a breakdown of the financials (land, construction fees) and gross development value (including individual unit sales)
- copy of the planning consent
- copy of plans (house and site plan)