Property Finance and Mortgage Syndicates
Montrose Securities helps to bring together borrowers with properties to fund and lenders looking for excellent rates of return. We arrange and provide specialist first and second (mezzanine) mortgage syndicates to lend on mortgages to qualified property owners, investors and developers. Click here to see our case studies.
Montrose identifies top-grade, high-yielding mezzanine property loan investments, appraises them against its strict lending criteria, and intensely manages the loans through tor repayment. Montrose’s “modus operandi” is to lend on properties where demand for the underlying security is greater than the supply. Preference is given to loan applications where the Borrower has a diversity of income sources to service or repay the debt.
Montrose’s mezzanine property finance loans to property owners and developers are secured by a second-ranking mortgage and charge. Loan terms for mezzanine property and business finance loans are specific to each transaction depending on the associated risk, but generally fall within the following high-level parameters:
Time frame: 6-24 months
Loan-to-valuation ratio: Up to 80% of lender’s instructed valuation/appraisal
Interest rate net of loan arrangement margin:
Lower rate of 20% to 25% per annum subject to there being no default under the terms of the loan, whereupon a higher rate of up to 40% per annum would apply.
Payment: Principal and interest instalments or interest only
Risk Participation Fee/Profit Share:
10% – 30% of loan principal for development transactions or for late repayment after the loan due date
Loan Approval Fee:
The greater of $10,000 or 4% of loan principal + VAT/GST, if applicable
Repayment: Clearly defined exit strategy to be provided