Legal & Regulatory Information

Scope of Arclen's service

Arclen specialises in property finance transactions intended to fall outside regulated mortgage activity.

Our launch service is limited to unregulated specialist property finance, principally:

• unregulated bridging finance;
• development finance;
• development exit finance;
• commercial and mixed-use property finance;
• investment and portfolio finance where within Arclen's accepted scope;
• refinancing of qualifying investment or commercial property;
• other specialist property funding structures for business or investment purposes.

Whether a finance arrangement is regulated depends on the legal and factual circumstances of the transaction, including the identity of the borrower, the nature and use of the property being provided as security and the proposed finance arrangement. The purpose or label attached to a loan does not by itself determine its regulatory status.

Eligibility assessment

Before Arclen accepts an instruction, we may ask questions designed to establish whether the proposed transaction is within the scope of the services we provide.

This may include confirming:

• who the borrower will be;
• whether the borrower is a company, individual, partnership or trustee;
• ownership of the security property;
• the current and intended use of the property;
• whether the borrower or a connected person occupies, or intends to occupy, any part of the security property;
• the purpose of the finance;
• the borrower's investment or business activity;
• the proposed exit strategy;
• any other information relevant to determining whether Arclen can accept the case.

Company borrowing does not automatically make every transaction acceptable to Arclen, and individual or trustee borrowing requires particular care because regulated mortgage requirements can apply depending on the circumstances.

Cases outside our scope

Arclen will not knowingly provide services in relation to:

• regulated owner-occupied residential mortgages;
• regulated residential bridging;
• consumer mortgage transactions requiring regulated mortgage advice;
• transactions falling within regulated mortgage arranging activity that Arclen is not permitted to undertake;
• any transaction whose regulatory status cannot be established to Arclen's satisfaction.

Where there is uncertainty, Arclen may request additional information, require independent legal or regulatory clarification, refer the client elsewhere or decline to act.

Acceptance of an enquiry does not mean that the transaction has been confirmed as eligible. Arclen may reassess eligibility if the transaction subsequently changes.

Regulatory information

Arclen is operated by:

No statement on this website should be interpreted as extending Arclen's permissions or activities beyond their legal scope.

Arclen acts as a broker

Arclen acts as an intermediary between clients seeking specialist property finance and potential lenders.

Our role may include:

• discussing the client's objectives;
• understanding the property or development opportunity;
• reviewing the proposed transaction structure;
• assessing the funding requirement;
• reviewing leverage, costs, timescales and proposed exit;
• identifying matters likely to affect financeability;
• testing transaction assumptions;
• assessing potential funding routes;
• considering relevant lender appetite and criteria;
• preparing the transaction for lender engagement;
• approaching selected lenders;
• obtaining and comparing indicative terms;
• helping the client understand differences between available structures;
• coordinating information requested by lenders;
• supporting valuation progression;
• coordinating with solicitors and other transaction professionals;
• tracking lender requirements and conditions;
• managing changes to the transaction;
• supporting progression towards completion.

Analytical assessment

Arclen may use proprietary analytical systems and transaction intelligence to assist our assessment of a case.

These systems may be used to:

• organise transaction information;
• model financial outcomes;
• assess leverage;
• test assumptions;
• consider alternative scenarios;
• identify risks;
• compare potential funding structures;
• assess lender suitability;
• identify the potential impact of changes to the transaction.

Analytical outputs support the judgement of the broker responsible for the transaction.

They are not lender underwriting decisions and do not constitute an offer of finance.

A lender may apply different assumptions, valuation methodology, credit policy or risk assessment.

Lender selection

Arclen does not represent that every lender in the market will be approached in relation to every transaction.

We may select lenders or funding routes based on factors including:

• transaction structure;
• property type;
• borrower circumstances;
• leverage;
• location;
• loan size;
• proposed term;
• exit strategy;
• lender appetite;
• lender criteria;
• pricing;
• speed;
• execution capability;
• information available at the time.

The fact that a lender is identified as potentially suitable does not mean that the lender will provide finance.

No legal, tax, accounting or valuation advice

Unless expressly agreed otherwise in writing, Arclen does not provide:

• legal advice;
• tax advice;
• accounting advice;
• investment advice;
• property valuation advice;
• surveying advice;
• planning advice;
• construction advice.

Clients should obtain their own professional advice where required.

Finance is not guaranteed

All finance arrangements remain subject to lender assessment, criteria, due diligence and approval.

The availability and terms of finance can be affected by matters including:

• borrower circumstances;
• ownership structure;
• credit history;
• property type;
• security value;
• valuation;
• location;
• planning position;
• development costs;
• contractor information;
• project viability;
• leverage;
• interest cover;
• rental income;
• lender policy;
• lender appetite;
• funding availability;
• proposed exit;
• legal due diligence;
• market conditions.

A lender may:

• decline a transaction;
• change its appetite;
• alter pricing;
• change maximum leverage;
• require additional security;
• request additional information;
• impose additional conditions;
• reduce the facility;
• require changes to the structure;
• withdraw indicative terms before completion.

Indicative terms and decisions in principle

Any indicative terms, quotations, lender feedback, preliminary approvals or decisions in principle should not be treated as a binding offer of finance unless the lender expressly states otherwise.

A formal lender offer may remain subject to:

• valuation;
• legal due diligence;
• satisfactory documentation;
• conditions precedent;
• lender credit approval;
• verification of information;
• any other lender requirements.

Valuations

A lender valuation is normally commissioned for the lender's purposes.

Unless the valuation expressly states otherwise, a borrower should not assume that they may rely upon it as an independent valuation of the property.

A valuation lower than expected may materially affect:

• loan size;
• leverage;
• pricing;
• borrower contribution;
• lender suitability;
• funding structure.

Changes to the transaction

Specialist property transactions frequently change.

Clients must inform Arclen promptly if any material information changes, including:

• purchase price;
• property value;
• development costs;
• programme;
• planning status;
• contractor;
• borrower structure;
• security;
• proposed use;
• income;
• tenancy;
• completion date;
• exit strategy;
• existing debt;
• information previously supplied to Arclen.

A material change may require the transaction to be reassessed and may affect lender appetite or previously obtained terms.

Client information

Arclen relies on the information supplied by clients, introducers and professional advisers.

Clients must provide information that is accurate, complete and not misleading.

Arclen is not responsible for losses arising from materially inaccurate, incomplete or misleading information supplied to us, subject always to any liability that cannot legally be excluded.

Property risk

Property finance normally involves security being taken over property.

General information

The information contained on this website is provided for general information only.

It is intended to describe:

• Arclen's services;
• the types of transactions we support;
• how our brokerage process operates;
• general specialist property finance concepts.

Website content should not be treated as advice specific to your circumstances.

No finance recommendation from website content

Nothing on this website by itself constitutes:

• financial advice;
• legal advice;
• tax advice;
• investment advice;
• valuation advice;
• an offer of finance;
• a lender approval;
• a recommendation to enter into a particular finance arrangement.

A funding strategy can only be considered after the circumstances of the actual transaction have been assessed.

Illustrative examples

Examples, transaction figures, lender scenarios, timelines, leverage calculations and other figures shown on this website may be illustrative.

They should not be interpreted as:

• available terms;
• current market pricing;
• maximum lender leverage;
• guaranteed completion periods;
• lender commitments;
• forecasts of what a particular transaction will achieve.

Actual finance terms depend on the individual transaction and lender assessment.

Information may change

Specialist lending markets change regularly.

Lenders may change:

• criteria;
• appetite;
• pricing;
• leverage;
• geographical restrictions;
• property restrictions;
• loan-size requirements.

Arclen does not warrant that general information displayed on the website will remain current in every respect.

Third-party information

Where this website refers to information obtained from third parties, Arclen does not warrant the accuracy of that third-party information unless expressly stated.

External links

This website may contain links to external websites.

Arclen is not responsible for:

• external website content;
• external privacy practices;
• external security;
• services supplied by third parties.

A link does not necessarily constitute endorsement.

Availability

Arclen does not guarantee uninterrupted availability of this website.

The website may occasionally be unavailable due to:

• maintenance;
• technical failure;
• infrastructure failure;
• security measures;
• circumstances outside our control.

Liability

Nothing in this disclaimer excludes liability that cannot legally be excluded.

Subject to that restriction, Arclen does not accept responsibility for decisions made solely in reliance on general website information without obtaining transaction-specific assessment or appropriate professional advice.

Finance warning