Arc & Co. launch Aviation Insight Series

Arc & Co. are pleased to announce the launch of their Aviation Insight series, which will see Arc & Co. team up with the leading experts in the Aviation sector to explore a multitude of topics. Aimed at HNWIs and their teams, we want to tackle the areas that are often overlooked or misunderstood.

TODAY we release 'Why cash isn't always king when it comes to private jets' which has been written in collaboration with Iain Houseman - Chief Operating Officer at Elit'Avia.

 
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To find out more, contact:

Gary Crichlow

Arc & Co. Aviation Finance

gary@arcandco.com

Case Study: Arc & Co. secure long-term funding for an investment student block

Client: Private Developer/Investor 

Requirement: Working on behalf of a new client, Arc & Co. secured long-term funding for an investment student block. The project comprised 29 student studios in a converted two-storey retail and office block in West Drayton. 

Solution:                              

·      Gross loan - £3,185,000 

·      Term – 5 year

·      LTV – 65%

The team had to overcome a couple of factors in order to complete the loan. As the property had only been converted for 1 academic year, there was no proven track record. However, due to the quality of each studio and the location, the client achieved 90% occupancy in year one and 97% at the start of the 2018 academic year. 

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Contact: 
Nick Holding-Parsons
Asset Finance Advisor  

T: +44 (0)20 3205 2191
E: nick@arcandco.com

Case Study: Arc & Co. secure a 80% LTV loan for 4 branded, city-centre hotels in the UK and Scotland

Client: Private Client

Requirement: A total loan of £66,280,000 for 4 branded, city-centre hotels located in the UK and Scotland

Solution:                              

Arc & Co. completed the loan for 4 branded, city-centre hotels located in the UK and Scotland. Edward Horn-Smith, Managing Director at Arc & Co., arranged the loan totalling £66,280,000. The loan consisted of both senior and junior debt; with a combined loan-to-value (LTV) of 80% and a blended margin of 3.4%. The loan is for a 5-year term and on an interest-only basis.

The availability of hotel financing has contracted over the last 2 years, but this deal demonstrates that there is still competitive financing available for good quality assets and with the right sponsor to back it.

Contact: 
Edward Horn-Smith
Managing Director - Structured Finance  

T: +44 (0)20 3205 2126
E: edward@arcandco.com

Case Study: Arc & Co. secure £8M funding for residential development scheme in Wembley, London

Client: Private Developer

Requirement: Arc & Co. worked on behalf of an existing client to secure funding for a residential development scheme in Wembley, London. The project comprises twenty residential units, 4 terraced houses and two apartment blocks, providing 16 split-level flats. Four of the flats are to be delivered as affordable housing units.

Solution:                              

·      Gross loan - £8,251,820 

·      Senior Debt - £6,866,000

·      Mezzanine debt - £1,385,820

·      LTC – 96%

Several factors made this transaction complex, which included: completing on the land purchase within 6 weeks, aligning the senior and mezzanine lender in a short period of time with no intercreditor deed in place, finalising the S.106 with the council in time to satisfy the lenders conditions.    

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Contact: 
Nick Holding-Parsons
Asset Finance Advisor  

T: +44 (0)20 3205 2191
E: nick@arcandco.com

Arc & Co. Advises on the £10.45M Recent Delivery of a Sunseeker 131 Yacht

Sunseeker 131

Sunseeker 131

Finance was on the completion and delivery of a Sunseeker 131.

Loan: £10.45M

LTV: 60%

Term: 5 years

Interest: 3.59% interest margin

Balloon on 50% payment

For more information about this deal or how we could help advise you on marine debt financing options, please contact:

Eugene Tripuk
Head of Russian & CIS Clients
Arc & Co. 
e: eugene@arcandco.com  
www.arcandco.com

Section 21: The view

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It is probably too early to provide a detailed comment about how the removal of Section 21 evictions will impact the renting and mortgage markets. The government is clearly doing this to provide more security to tenants so they can only be evicted with good reason. However, will this have the unintended consequence of restricting tenancies for some, because landlords may not want to take on a tenant that they are not 100% certain about? Ultimately, landlords can still evict for non-payment of rent, or for damage done to their property; but only by using a Section 8 eviction, which is a far longer process than Section 21, and can be challenged in court by the tenant.
 
The Government has also said that it will amend rights for landlords who wish to evict tenants if they want to either sell the property, or move into it themselves, as well as speeding up the Section 8 process.
 
We are yet to see how this will impact on lenders, although they are usually led by the legal advice they receive from the solicitor when the application is made. As long as lenders are able to obtain vacant possession in the event of a repossession,then this should not affect the mortgage market.
 
Anything that can be done to improve the experience of tenants has to be a good thing, and offering greater stability, especially for renters with children, is clearly important. However, it still needs to be fair to the landlord, and to allow them to run their property in a way that allows fairness and flexibility on both sides. Ideally the best relationship is one where the landlord and tenant can have an adult conversation about the contract, and where no one has to resort to Section 8 or 21 evictions; however when all other options have been explored, the legal mechanisms should be as quick and as simple as possible – whether removing Section 21 will allow this remains to be seen.

**HMO enforcement: coming soon to a Council near you. Read More**

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Alistair Hargreaves

Financial Consultant - Arc & Co.

T: +44 (0) 203 205 2129

E: alistair@arcandco.com

Stealth HMOs

When is a normal buy-to-let (BTL) house a stealth HMO (House of Multiple Occupancy)? When you think of an HMO you might consider a house with two kitchens, or it being more than three storeys high, or one let room-by-room with five tenants in it.

However, thousands of landlords might now own a HMO and have no idea about it…..read on for more information.

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From 1st October 2018, HMO rules changed and now any property let to three unrelated people can be classed as an HMO, as the property will comprise of more than one household. This is the guidance set by the Government and individual councils then decide on their own rules and adoption.

So, if you have a standard mortgage on a property with three unrelated people living there and the local authority deems this an HMO, then the council will write to your lender to inform them. You will then receive a letter stating that you will need to remortgage onto an HMO product. Some lenders are reasonable and will allow you to remortgage at the end of the fixed term. However, some are different to this and will demand repayment within a shorter time scale.

Arc & Co. strongly recommend that landlords check with their local authority to see if a license is needed, and if you do need a new one, then contact your mortgage broker to start reviewing your new lending options. 

We are already seeing a number of clients receiving letters from their lenders. The good news is that there are a range of new, specialist BTL lenders who offer a whole range of HMO products - both in personal and Ltd company names - and as this area of the market is now more crowded, we have seen lowered mortgage rates and reduced fees.

The following link allows you to check on your local authority’s status when it comes to HMO rules.

https://www.gov.uk/house-in-multiple-occupation-licence

If you are concerned about the above then please contact Alistair Hargreaves.

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Alistair Hargreaves

Financial Consultant - Arc & Co.

T: +44 (0) 203 205 2129

E: alistair@arcandco.com