Residential development

Minimum commitment

€250,000

Usual commitment period

1 year

Debt Commitment Value (CTV)

Usually 50-55% of gross development value

Percentage of costs

Negotiable, but generally within the overall debt CTV limit, we will fund up to:

• 60­% of site/land costs
• 100% of development costs
• 100% of interest

These percentages will vary dependent upon the profit margin in the development.

Site considerations

Within areas of relatively high employment in the Spanish.

Sites to have at least outline planning in place prior to lending.

As a guide, we prefer projects to show a minimum target profit of 20% on costs.

Valuation/monitoring

Bank's valuer and surveyor to assess construction costs, development timetable and cash flow prior to drawdown and certify work (usually monthly) throughout the development.

Security to include

• First charge on property
• Floating charge (corporate borrowers)
• Assignment of building contract rights
• Collateral warranties from major contractors/sub-contractors where necessary
• Personal Guarantees
• Life cover

We will also fund all or part of "equity" costs for a share of the profit.