General info | Lending Policy | Mortgage loans | Bridging finance | Intuthuko equity fund | Construction loans | Deferred sales

 
TUHF specialises in mortgage lending for rental housing projects in inner city areas.

A loan period of up to 15 years is offered in a tailor-made way to match the underlying cash flows.

In another unique product, TUHF offers a single long-term (15 year) loan that covers both the purchase and the construction of a property.

A mortgage loan is an advance of funds from a lender to a borrower secured by real property and evidenced by a loan document. The mortgage sets forth the conditions of the loan as well as the manner and duration of repayment.

The property involved in a mortgage agreement is transferred to the borrowing buyer's name at the beginning of the loan period. The property itself is also registered as security for the lender, against the loan, until it has been paid in full.

This process ensures:

• A seller, the present owner of a property, that the purchase price will be paid;
• A buyer, who wants to own the property, that the purchase price can be raised;
• A lender, usually an organisation such as TUHF, or a bank, that the loan will be re-paid over an agreed length of time and number of payments; and
• The lender reserves the right to use the pledged property to secure the full repayment of the loan if the conditions of the loan agreement are not met.

TUHF will provide clients with a mortgage on condition that:

• It is re-paid, with interest;
• That the money is sufficiently secured against real assets;
• The borrower is a reliable person or organisation to lend money to; and
• The borrower signs a personal surety for the loan.
• More than 90% of our business is mortgage loans, given for:
• Purchase of small or large blocks of flats;
• Refurbishments of small or large blocks of flats;
• Conversion of existing buildings to residential;
• Purchase of a controlling share in a sectional title block of flats; or
• New build blocks of flats for rental purposes.

These loans range from between R100 000 to R30-million although TUHF targets loans between R2-million and R10-million.

TUHF also offers an interest and a capital grace period to cover the construction and rent up period.

If a client requires a larger facility, TUHF arranges syndicate or joint finance with its commercial partners.

Whether the project is large or small, clients enjoy the same expert advice, quick decision making and network of contacts.

TUHF will only finance projects that are viable and will yield enough money to not only repay the loan with interest, but also to make a profit.

TUHF works with the buyer to ensure that the project is feasible, the purchase price reasonable and that local market conditions are met.

TUHF charges interest and raising fees, at market-related rates, payable over up to 15 years (negotiable for each project).

The financing is tailored to the specific needs of the borrower, for example, a grace period to cover periods of no rent income, and obligations of the loan are fully explained.

The security required is a mortgage bond over the property and full personal surety for the loan. In exceptional circumstances, the borrower can offer other investments, including other properties, to provide the necessary security (collateral security).

TUHF ensures that there is a good fit between the borrower and the building as well as between the financial demands of the purchase and the rentals that can be realistically expected. By doing this, TUHF is able to help entrepreneurs to access the residential property market.

TUHF encourages clients to develop their property interests, thereby enabling them to grow from part-time to full-time property entrepreneurs.

For application forms, visit our Client Zone here.