stress free bridging finance for you and your clients

FAQs

1.	Will my Cheval loan be regulated by the Consumer Credit Act 1974 (as amended)?

The removal of the old financial limit has widened the ambit of Consumer Credit legislation. This means that some Cheval loans are now caught by the Act unless they are specifically excluded.

Last updated: 21-Apr-2008

2.	Will my Cheval loan fall outside the Consumer Credit Act 1974 (as amended)?

Yes, if it is a Regulated Mortgage Contract, or you are a debtor with a high income or net worth, or you can prove to Cheval’s reasonable satisfaction that the loan is wholly or predominantly for business purposes.

Last updated: 21-Apr-2008

3.	What happens if my Cheval loan is regulated by the Consumer Credit Act 1974 (as amended)?

The Consumer Credit Act 1974 (as amended) prescribes a number of formalities that Cheval must follow.

Special application process: Cheval must send you an advance copy of the proposed Consumer Credit Agreement and then wait until 7 calendar days have passed before sending you an original for signing. This must exactly match the advance copy of the Credit Agreement; unfortunately, this means that if your loan requirements change during this period Cheval must issue a new Consumer Credit Agreement and repeat the process.

Post-completion: Cheval must provide you with information at regular intervals in a prescribed format.

Last updated: 21-Apr-2008

4.	What is a Regulated Mortgage Contract?

A Regulated Mortgage Contract is a loan that involves us taking a first charge on your home or a property occupied your close family. A Regulated Mortgage Contract will be regulated by the Financial Services Authority and falls outside the Consumer Credit Act 1974.

Last updated: 21-Apr-2008

5.	Am I a debtor with high net worth?

You will be designated as a high net worth debtor if you and your accountant or solicitor declare in a Statement that you meet certain financial criteria relating to the financial year immediately preceding the year in which the Statement is made and you have agreed to forgo the protection and the remedies prescribed by the Consumer Credit legislation.

Last updated: 21-Apr-2008

6.	Is my loan for a business purpose?

Not unless you provide Cheval with a declaration that the agreement is wholly or predominantly for business purposes and Cheval has no reasonable cause to challenge that declaration.

Last updated: 21-Apr-2008

7.	I am an FSA authorised mortgage intermediary wishing to create a KFI for an rmc?

In order to allow you to create Cheval KFIs, please register for access to the Cheval Intermediary portal. Please note that your FSA authorisation number will be required and will be checked before granting access to regulated content including the KFI system.

Last updated: 27-Oct-2005

8.	I am an FSA authorised mortgage intermediary enquiring about a non-regulated bridging loan.

Please contact our new business team on 0844 800 3208 who will be pleased to assist you with enquiries regarding non-regulated mortgage contracts. Alternatively, please register for intermediary content through our Intermediary portal.

Last updated: 27-Oct-2005

9.	I am a non - authorised mortgage intermediary enquiring about a non-regulated bridging loan.

Last updated: 27-Oct-2005

10.	Does Cheval lend on Scottish or overseas property?

Cheval will lend against properties in England, Wales and Scotland. Unfortunately Cheval cannot lend on properties situated in Northern Ireland or outside the United Kingdom.

Last updated: 07-Aug-2006

11.	Can Cheval lend to off-shore companies?

Yes, provided the property being offered as security is located in England, Wales or Scotland and a personal guarantee of a company related individual resident in the United Kingdom is provided.

Last updated: 07-Aug-2006

12.	Does Cheval accept Second Charges as security?

Yes, Cheval does accept second charges as security on residential properties only. Please contact us to discuss yours or your client's requirements.

Last updated: 27-Oct-2005

13.	Does Cheval lend on land (i.e. where there are no buildings)?

Yes, provided strict criteria are met.

Last updated: 27-Oct-2005

14.	What is the maximum LTV?

The maximum LTV is dependent on the property taken as security:

Security Description	LTV
Closed Bridges	up to 100% LTV *
Residential property	Lower of 70% of Market Value or 80% of purchase price
New Build property	Lower of 70% of Market Value or 80% of purchase price
Residential property (second charges)	up to 65% LTV
Semi- or fully commercial property (first charges only)	Lower of 60% of Market Value or purchase price
Land (with planning permission)	Lower of 60% or Market Value or purchase price
Developments & Refurbishments	on application

* Subject to the net refinance monies being greater than the Cheval loan amount. The transactions must be simultaneous.

For loans above £1m, the security will also be visited by the Cheval in-house surveyor.

Last updated: 28-Aug-2007

15.	What Surveyors are acceptable to Cheval?

For loans less than £1.5M

We currently have a number of firms of surveyors on our panel however we are happy to accept recent valuations from firms of surveyors who are not on our panel but who have 4 or more partners and Professional Indemnity cover of over £1million provided that residential valuations are typed on the Cheval form on Quest. For revaluations of commercial properties, we will send the valuers a letter of instruction.

Cheval will require full details of the PI cover (including excess limits), a list of lenders who they are currently on the panel for and confirmation of the number of partners they have before we can confirm that we are happy to accept a report from them.

Please always check with Cheval prior to instructing a surveyor.

For loans greater than £1.5M

Cheval require all Jumbo loans to be valued by one of the following valuers:

Ashdown Lyons	DTZ	Savills
Knight Frank	CBRE	King Sturge
Humberts	Cushman & Wakefield	Lambert Smith Hampton

The valuers must be instructed using Cheval’s specific “Jumbo loan instructions” (copy available on request).

All valuations will need to be countersigned by a Senior Official of the surveyor firm.

Valuations will not be deemed completed and accepted by Cheval unless they are accompanies by all the photographs requested in Cheval's Letter of Instruction to Valuers.

Last updated: 07-Aug-2006

16.	What costs are involved in taking out the bridging loan?

Cheval does not charge any up front fee. If we have been instructed to organise the valuation we will ask the surveyor to contact the customer or intermediary for payment (see table below for standard fee scale). Upon completion, the following fees will be deducted from the loan amount;

£45 Chaps fee,
Administration/Completion fee (typically 1%) payable to you as the introducer
Retained interest (if requested),
Our solicitor's fee (see table below for fee scale).

Valuation Fees

Value of Property	Valuation Fee
£0 - £100,000	£164
£100,001 - £150,000	£197
£150,001 - £200,000	£236
£200,001 - £250,000	£274
£250,001 - £300,000	£313
£300,001 - £350,000	£367
£350,001 - £400,000	£389
£400,001 - £450,000	£411
£450,001 - £500,000	£433
£500,001 - £600,000	£488
£600,001 - £700,000	£543
£700,001 - £800,000	£598
£800,001 - £900,000	£653
£900,001 - £1,000,000	£708
£1,000,001 - £1,250,000	£795
£1,250,001 - £1,500,000	£905
£1,500,001 - £1,750,000	£1,090
£1,750,001 - £2,000,000	£1,295
Over £2,000,000	By arrangement

Valuation Report Out of Date

A valuation report is valid for three months from the date of inspection. If the valuation is between three and six months old, the Valuer must confirm that the value is unchanged and can still be relied upon. If this confirmation is qualified in any way, or where the date of completion will be more than 6 months from the original inspection date, a new valuation must be commissioned. All costs are payable by the borrower.

Legal fees

For lending to individuals on vacant or single tenanted residential & vacant commercial property.

Value £	Remortgage	Purchase
0 - 500K	£425	£500
500K - 1m	£700	£800
1m - 2m	£900	£1000
Over £2m	By arrangement

For each additional property taken a security add £100

When the borrower is a corporate body add £150

Where a commercial lease is held add £150 per lease

The above fees exclude Vat and disbursements and are estimates. Fees for complex or difficult cases may be higher.

Last updated: 08-Mar-2007

17.	How do I view Intermediary Specific FAQ's?

Intermediary specific FAQ's can be viewed by logging in to the Cheval Intermediary portal.

Last updated: 19-Dec-2005

18.	What are Cheval's company registration numbers?

The Cheval Group of Companies comprises:

Cheval Property Finance Plc (Registered No. 3131133)
Cheval Bridging Finance Ltd (Registered No. 4430986)
Cheval Finance Ltd (Registered No. 3709012)
Cheval Property Developments Ltd (Registered No. 4348496)
Cheval Specialist Bridging Ltd (Registered No. 4372089)
Cheval Commercial Finance Ltd (Registered No. 4219776)

all of whose registered office is Meridien House, 69-71 Clarendon Road, Watford, WD17 1DS.

Last updated: 16-Jan-2007

19.	Which types of loans do Cheval offer?

Cheval currently offer the following types of loans:

1) Standard Residential Bridge

2) Standard Commercial Bridge

3) Light Refurbishment Bridge

4) Same Day Bridge

5) AVM Bridge

6) Jumbo Bridge

7) Auction Bridge

For more information, and to view product sheets of each of the above loans, please log on to the Intermediary Portal and select "Downloads"

Last updated: 22-Aug-2007

Authorised and regulated by the Financial Services Authority.

Your home may be repossessed if you do not keep up repayments on your mortgage.