Tuscan Capital enters commercial lending market

Previously, Tuscan Capital had focused on the residential, semi-commercial, HMO and mixed-use bridging sectors. However, with a new funding facility in place the lender said it now had the appetite and capacity to reach and serve a new broker/client demographic.

The new commercial product - named 'Commercial Bridging by Tuscan Capital' - offers loans from £100k to £5m up to 65% LTV on terms from 3-18 months. Loans are available for purchase, refinance or capital raising on retail units, office units, warehouses and industrial premises.

Tuscan will also offer and with planning as supporting security and assets of non-standard construction up to 55% LTV.

The new term facility - named 'Stabiliser by Tuscan Capital' - is a 2/3 year term product for clients who have finished their refurbishment projects but need to repay the bridge while they prove their rental model (by stabilising the rental yield), so enabling them ultimately to refinance with a high street buy-to-let lender.

The Stabiliser is only available to existing Tuscan Capital bridging borrowers and aims to provide a ‘comfort blanket’ for clients who want assurance that they can repay the bridge once their building work is complete.

Features include terms for 24 or 36 months up to 70% GDV (with equity release allowable) and rates from 0.575% per month.

Tuscan Capital said the commercial bridge facility is just one facet of an enhanced offering being rolled out for 2022.

Other improvements include a sharpened appetite for larger loans (£3m to £10m) where multiple properties and/or portfolios are being acquired and greater criteria flexibility across the existing range of light refurbishment, heavy refurbishment, mixed-use conversion and developer-exit products.

Colin Sanders, Tuscan Capital’s CEO, said: “Our new wider lending proposition has been made possible through our access to multiple funding channels which are distinct from the rest of the market.

“Our funding partners complement one another as they have different and differing risk appetites. This gives us the flexibility to consider business which would not typically tick the boxes of institutional funders, and allows us both to price competitively for risk while taking a realistic, commercial approach where the quality of the deal justifies it.

“Having enjoyed a stellar 2021 and building our loan book beyond all expectations, we head into 2022 with a significantly enhanced proposition and a strengthened operational team to support it.”