Regentsmead partner with Roche Associates

Regentsmead has established a new business relationship with Roche Associates to broaden the range of service available to their clients. James Bloom (Regentsmead) “As specialists in Land Remediation in Tax Relief Roche Associates will be able to provide expert advice to our clients in this complex legal area. We look forward to developing our relationship with Roche Associates over the next few months”.

For the Roche Associates new release: http://www.rocheassociates.co.uk/News.aspx.

How can Developers
overcome the Credit Crunch?

Housing Specification: February 2008

The last few months have been turbulent times for the money markets due to the collapse of the sub prime lending market in the United States, this has had an adverse affect on financial institutions worldwide.

The repercussions of these problems have impacted heavily on other sectors including retail and the property market. Virtually all UK lenders have, as a result of these problems, reduced their lending parameters to all sectors but particularly the property market. When banks lending is restricted and is accompanied by rising short term interest rates this is often referred to as a credit crunch.

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Counting on Credit

housebuilder: April 2007

Getting the right funding can make or break a development. Andrew Leech takes a look at the products on offer and finds that good relationships pay dividends.

Maintaining a firm, trustworthy bond between housebuilder and loan provider is essential and pays dividends, as one of Regentsmead’s clients found out when serious problems threatened a steel frame scheme of 58 apartments by URDI in Grantham. The client had never undertaken a project of this magnitude and while meticulous costings were provided, due to planning and specification changes, build costs escalated dramatically. Also, a fire in the new structure created additional financial aggravation.

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Cleaning up with brownfield building

niche commercial finance: March 2007

Contamination in itself is not a problem but you must get a proper investigation done and the right people in to deal with it.

Ambitious developers know that even the most dismal brownfield sites, such as former petrol stations, landfill sites and factories, can be potentially attractive new opportunities for housing schemes. However, they need the right support from lenders.

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Cashpoints

housebuilder: June 2006

Housebuilders seeking finance should talk to companies with an in-depth understanding of the sector. Tim Palmer seeks lenders’ views on maximising margins and minimising risk.

"When borrowing money to fund a scheme, housebuilders benefit from talking to a specialist lender who can offer a quick response along with flexible terms and conditiions. “Housebuilders expect to recieve immediate attention and we can put them in a position to bid for sites knowing that capital will be immediately available”. says James Bloom, MD of Regentsmead. “Our forte in the equation is a fast, flexible approach with decisions made in hours rather than weeks. We typically lend 20% more than most high street banks with 50% on land and 100% on the build. We aim to build up a long-term relationship to enable a housebuilder’s business to grow steadily – indeed borrowers regulary return to finance successive developments."

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Method Contracting

professional builder : July/August 2005

Finance and timber frame experts team up to provide a solution for builders and developers to help meet government targets.

"Modern Methods of Construction (MMC) – these are the new industry buzz words that have now become synonymous with John Prescott’s plans for 120,000 extra homes each year. ‘Streamlining services’ and providing ‘one-stop-solutions’ are phrases that Potton, the timber frame expert, and Regentsmead, specialist provider of development finance, believe provide a better alternative for builders and small – to medium-size developers."

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Timber framing and fast finance
provides a one-stop-shop solution

housebuilder: June 2005

Regentsmead, with 70 years experience of financing property schemes, and timber frame specialists Potton, have got together to offer a one-stop-shop solution for small to medium sized developers. The two companies believe they can help speed up urban and rural developments by providing a “more organic growth of housing stock".

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The Need For Speed

housebuilder & developers datafile: July 2004

Project finance is becoming an increasingly important factor for a developer

Locating suitable development opportunities or refurbishments is becoming a more laborious task for developers and those wishing to get involved in the property development industry. When a project is identified there is normally more than one person interested in the property or site and subsequently developers need to know that they have a lender in place who is able to act quickly to provide the necessary funding. Regentsmead Limited have been established since 1934 and are a principal lender, providing development finance. Borrowers are able to build up a long term relationship; with members of our team offering a professional, fast and flexible service.

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Thinking big

niche commercial finance: June 2004

Development and bridging loans provider, Regentsmead, has been established since 1934.James Bloom talks to Tamsin Hemsley about the importance of the company’s history and its plans for the future

As a well-established, family run company. Regentmead is steeped in history. Established in 1934 by Nathan Rosenbaum, the company was originally based in Highbury, north London but moved to Edgware in Middlesex in 1984. Rosenbaum remained chairman of the company until 1990 when his son Richard Ross took over the role. A chartered accountant with a degree from the London School of Economics, Richard Ross was previously the finance director and worked closely with his father developing the business.“My father was an entrepreneur and a very hard-working man,” says Ross. “His legacy is still alive today with many of his principles and values still instilled in the senior management team at regentsmead.”

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They showed me the money

housebuilder: January/February 2004

Andrew Leech finds that despite the complexities of acquiring brownfield sites, plenty of advice and financial offers are available from leading funders who understand the importance of a quick turnaround time.

As every housebuilder knows, the dash for suitable building land is a bit like the Klondike gold rush with people stepping over each other to reach the front of the queue. And, in the majority of cases, he who coughs up first claims the nugget

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Quick turnaround

Housebuilder: April 2003

A virtue of good funding, apart from remaining open minded and understanding the importance of evaluating each case on its merits, is providing a quick, positive turnaround on loan applications. Regentsmead distinguished itself 12 months ago by completing a sizeable new loan provision within six days. But nonetheless full cognisance was given to risk management.

The company is currently working with about 50 developers. In normal circumstances its borrowers are expected to have 50% of the site acquisition costs then it usually provides the balance together with 100% of the construction costs. Regentsmead director, James Bloom, explains: "This means we are funding 80 to 85% of the total project cost. We look at the location and cost of the site and the predicted profit.

"Over the last few months we have noticed an increase from an average of 30% site/resale to 40% site/resale and have had to look at loans more cautiously as a result. But we don't just look to protect our interest as our aim is to work with our borrowers on an ongoing basis over many years.

"This means what is good for us is good for them and vice versa, we often act as an unpaid financial adviser and won't hesitate to steer our borrowers away from a deal if we feel with our extensive experience that it is likely to be unprofitable or too problematical."

Article featured in Housebuilder, April 2003, News in brief

Speediest loan

Housebuilder: April 2002

Finance firm Regentsmead is claiming a record for the speediest loan. Essex developer John Taylor received his £180,000 just six working days after presenting his scheme to the firm - he approached Regentsmead after waiting four weeks for an answer from his clearing bank.

Article featured in Housebuilder, April 2002, News in brief

Fast acting Regentsmead

Housebuilder: January 2002

The ability to act fast on land deals is the principle reason Reg Howard of Warwick Developers has remained with Regentsmead which claims that 95% of borrowers return for further funding. Warwick is currently being funded for the tenth time by the lender. Howard says: “Knowing Regentsmead’s speed and flexibility, we’re able to spot a site and if we know the values almost say yes to it there and then. We don’t miss many opportunities. Smaller developers especially would struggle to get the same service from a clearing bank.”

A typical Regentsmead development is six to eight detached houses in a small village but town centre schemes and flat developments are also funded in an area from Devon to the Midlands. Minimum development size is one unit with minimum £50,000 loan. Maximum is £3 million per site with 50% of site purchase and 100% of development costs the usual arrangement. More is sometimes lent on a profit-sharing agreement.

The company charges nothing until a formal offer is issued and accepted when a 1% commitment fee is levied. Interest is charged at a fixed rate throughout the development; a standard rate of 1.25% is payable only on amounts drawn down. There are no redemption fees or penalties.

Finance head James Bloom says: “Offers are issued within 24 hours of us agreeing to lend and funds can be advanced within a week of an offer being accepted.

“We prefer the developer to have at least outline planning in place with his percentage of the site purchase in place. We have a partnership approach to developments and, as such, offer advice and meet regularly at every stage. I like prospective borrowers to approach me in the first instance as we want to retain the personal touch with developers that disappeared from banks 20 years ago.”

Of the future Bloom adds: “There are still nowhere near enough houses being built which should maintain demand. Low interest rates will underpin the market and keep housing affordable although there are obvious economic concerns which could affect the market - certainly house price growth seen in recent years is unsustainable in this low inflation era.”

Article featured in Housebuilder, January 2002, news.