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Brokers

Brokercast: Enhancing our care home policy for an underserved market

Allica Bank's Chief Commercial Officer Nick Baker and Specialist Relationship Manager Brian Bovell discuss changes to its care home credit appetite and the care home sector.

By Allica Bank

1 minute read · 19 May 2022

Culture

The Henry Allen Trust named as Allica’s charity partner of the year for 2022

2 minute read · 24 March 2022

Technology Savings

Spotting frauds and scams – how to protect yourself

11 minute read · 15 March 2022

Meet the team Culture Technology

Meet Sheliza Siddiqui, Credit Risk Quant at Allica Bank

5 minute read · 4 February 2022

Meet the team Culture Technology

Meet Keshvi Radia, Head of Product for Payments at Allica Bank

4 minute read · 27 January 2022

Meet the team Culture Technology

Back-end engineering at Allica Bank

John Duggan writes about the back-end engineering team at Allica and what we're doing to meet the demands of a growing and innovative bank.

By John Duggan, Lead Engineer

3 minute read · 14 January 2022

Culture

VIDEO: Our story so far

1 minute read · 22 December 2021

Brokers

Brokercast: Care home commercial mortgage deals – what you need to know

4 minute read · 2 December 2021

SMEs Brokers

Success Stories: CME Limited remortgages with Allica to release cash and fund expansion

2 minute read · 25 November 2021

Culture Technology

Allica Bank held its first ever hackathon. And it won’t be the last!

3 minute read · 11 November 2021

Criteria	Description
Loan size	£150,000 to £15 million
Repayment type	5-year interest only 5-year partially amortising
Arrangement fee	2.0%
Debt service cover	Commercial: 130% Semi-commercial: 120% Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates.
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years

Criteria	Description
Loan size	£150,000 to £10 million
Repayment type	30 year capital & interest 5-year interest-only available at the start of the loan term for loans up to 75% LTV
Arrangement fee	1.5%
Debt service cover	130% Calculated on the rate not including the current account discount Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Owner-occupied hotels	Loans over 80% of VP value must be fully amortising from day one Personal guarantee to be given for any amount in excess of 70% of VP value

Criteria	Description
Loan size	£200,000 to £15 million
Repayment type	5-year interest only
Arrangement fee	2.0%
Interest cover	130% standard, 145% higher rate taxpayer Gross rent used for residential/ MUFB applications if; evidence of 3 months' loan repayments in cash via bank statements and one UBO/director with Experian Consumer score of 881+ plus a supporting personal guarantee. Otherwise we will use net rent assumption of gross rent minus 10%. HMO properties will always be assessed using gross rent minus 25%
Early repayment charges	5%, 4%, 3%, 2%, 1% (years 1–5)

Criteria	Description
Loan size	£500,000 to £15 million £5 million maximum loan for first time buyers
Repayment type	Capital and interest Experienced operators: 30 years First time operators: 20 years
Arrangement fee	1.5%
Debt service cover	130% adjusted EBITDA for children’s nurseries and experienced care operators 150% adjusted EBITDA for care first-time buyers Repayment cover calculated at pay rate for fixed rate mortgages and pay rate plus 2% for variable rates
Minimum size	Care homes: 20 bedrooms Specialist care: 4 bedrooms, if one or two properties, and flexible if there are three or more properties Children's nurseries: 40 places
Early repayment charges	5 year fixed: 5%, 4%, 3%, 2%, 1% (years 1–5) Variable: 3% for the first 5 years
Specialist care operators	Children’s learning disability care Adult learning disability residential care Adult supported living Minimum of three years as a specialist care home owner-operator required

Criteria	Description
Loan size	£150,000 to £10 million
Maximum loan to value	75% for residential and semi-commercial properties, 70% for commercial
Term	Up to 24 months
Fees	Arrangement fee of 2%, deducted from advance
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Security	First legal charge over freehold or long leasehold title(s)
Insurance	Title insurance and search indemnity applied where possible
Valuations	AVMs and desktop valuations available up to 70%
Interest	Retained or serviced

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

Criteria	Description
Borrowers	UK registered limited companies, LLPs, partnerships and sole traders
Cost plan	Cosmetic: Higher of 15% of OMV, or £50,000 per property. Light: Higher of 50% of OMV, or £75,000 per property. Medium: Higher of 100% of OMV, or £100,000 per property.
Monitoring	Cosmetic and Light refurbishment to be monitored by our asset manager. Medium Refurbishment to be monitored by our QS.
Valuations	Full RICS valuation
Interest	Rolled. Rates are fixed and charged daily in arrears
Refurbishment type	Cosmetic: Works to improve speed of letting and compliance with regulations. Examples include redecoration, EPC improver works, compliance with utility regulations, boiler upgrades, modernisation. Light: As with Cosmetic, but higher cost plan. Medium: Loft conversions, reconfigurations, single story extensions, commercial to residential schemes.

Brokercast: Enhancing our care home policy for an underserved market

The Henry Allen Trust named as Allica’s charity partner of the year for 2022

Spotting frauds and scams – how to protect yourself

Meet Sheliza Siddiqui, Credit Risk Quant at Allica Bank

Meet Keshvi Radia, Head of Product for Payments at Allica Bank

Back-end engineering at Allica Bank

VIDEO: Our story so far

Brokercast: Care home commercial mortgage deals – what you need to know

Success Stories: CME Limited remortgages with Allica to release cash and fund expansion

Allica Bank held its first ever hackathon. And it won’t be the last!

Explore award-winning business banking with Allica Bank