Madison Carter Finance has had a rocking close to 2023 with over £85M in debt enquiries, Q4 along. This equates to £120m worth of real estate. This was a mix of large bridging loans that really pushed up the values to second charge bridging loans and auction bridging finance.
Madison Carter Finance sees 2024 outlook to be patchy but still commercially viable as many clients have been using development exit finance for extending the sales periods as being slower than one would hope.
The factors have been a massive hike in interest rates, cost of living crisis and general uncertainty in the economy at large.
The zeitgeist is, we are seeing new enquiries for development finance up 400% on last year. Thus, many house builders that have been holding fire in recent years are attempting to ride the wave in 2025. The UK has a general election in 2024 and with that, the outlook would anticipate to be more positive than normal, due to the political environment.
The scheme we are seeing spans right across the south east of England, UK.
We are seeing a mixture of schemes from Watford, Essex to Somerset with a broad range of GDV. Ranging from £1.7m – £10m GDV. Are largest enquiries schemes GDV was £48m and was a scheme in Canary Wharf London.
We are anticipating more developer finance in 2024 as we are seeing many clients that have felt the impact of higher build costs, rates and slow down in sales thinking we have hit the bottom.
Madison Carter Finance also has a lot of technology coming down the pipeline for 2024 with online registration, online fee collection, zero to paper light application process along with faster decision making processes. Thus set them out from the competition as a FinTech. ‘Digital heart human soul’.
2024 Outlook: Navigating Commercial Viability
Whilst we don’t see the sales market being as buoyant as we’d like, we get the distinct impression from property developers that if they start building through 2024 there will be light at the end of the tunnel in 2025.
Inflation is falling faster than the Bank of England would have hoped. Interest rates are falling and we predict the BoE base rate will slowly start to creep down in 2024. Thus, buyers will start to enter the market.
Development Finance Trends: Riding the 2025 Wave
We predict that property developers that have land banks or sites with planning and not broken ground on them yet will start to build out. The UK government has a target of 300,000 houses to be built per annum. (“Tackling the under-supply of housing in England – House of Commons Library”). The current status quo is that we see there is a decline in new build properties being built in recent times. Thus government targets aren’t being met.
Case Study
Belgravia Large Bridging Loan
We had a previous client that required a £30m large bridging loan on one single asset. The GDV was 75m. The funds were used to repay the existing lender, a private bank, who was exercising an open call clause in the mortgage term sheet.
Development Exit Finance Canary Wharf
We had a blue chip property developer contact us to refinance away from a development facility that had come to the end of its term. It was a tricky case as the LTV was over
Auction Bridging Finance
We had a client that exchanged the contracts at a property auction and had failed to complete. We got on board and gave the client advice that he was not able to source anywhere else. Our advice saved him his married home.
Our advice goes beyond the auction bridging finance.
Second Charge Bridging Loans
A client required emergency funds for a business venture and had a property with £800,000 with a small buy to let loan of £310,000. He required £150,000 to support his position in the business and his exit was the sale of property. Second charge bridging loans are usually financial instruments for such events. Fast and flexible funding.
About Madison Carter Finance
Madison Carter Finance specializes in Bridging Loans and development finance, That help Property Developers, investors & Individuals, who want to transact with less hassle. By reducing friction with technology and internal capabilities to gain clients better terms (smart money). And increasing their equity position over time.
- Steven Coogan
- contact@madisoncarterfinance.com
- 0207 431 7606
What sets Madison Carter Finance apart in the market?
Madison Carter Finance distinguishes itself through its specialization in Bridging Loans and development finance, leveraging technology to offer clients better terms and a hassle-free experience.
How does the company handle client transactions efficiently?
The company streamlines transactions by embracing technology, with upcoming features like online registration, fee collection, and a paperless application process.
What geographical areas does Madison Carter Finance cover?
Madison Carter Finance covers a broad range, spanning from Watford and Essex to Somerset in the south-east of England.
Can individuals benefit from Madison Carter Finance’s services?
Yes, Madison Carter Finance caters to individuals, property developers, and investors, simplifying transactions and offering favorable terms.
How does Madison Carter Finance address the impact of economic uncertainties?
Madison Carter Finance addresses economic uncertainties by providing solutions like development exit finance and anticipating market trends to guide clients effectively.
Reference
- “Tackling the under-supply of housing in England – House of Commons Library.” The House of Commons Library, 19 May 2023, https://commonslibrary.parliament.uk/research-briefings/cbp-7671/. Accessed 22 December 2023.
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