Our lEnding policy

TUHF (The Trust for Urban Housing Finance), is a financial services company specialising in the financing of rental housing companies and individual property entrepreneurs who do business within South Africa’s Inner Cities.

Although an independent company, TUHF retains strong links with the financial services sector. These links are realised in its partnerships with commercial banks, development financing institutions, local government and other rental housing organisations. As the market leader in the sector, TUHF offers clients solutions that are tailor-made to their specific needs and provides the aggressive financing positions necessary to meet the requirements of this tough business environment.

TUHF also brings its influence to bear by mobilizing its resources and networks to assist its clients to ensure their success and the success of its own operations. TUHF’s ability to secure market related financing gives clients the competitive advantage while the experienced advice on successful rental housing practice builds the confidence that enables clients to grow.

When looking at all the usual terms in a mortgage financing arrangement such as transaction costs, speed of decision making, term and loan to value positions, TUHF’s lending is below market. Repayment periods can be up to 15 years and are negotiated for each project. Although the property provides the primary security for TUHF’s loans, full personal surety is also a requirement. Investments already held by borrowers, including other properties, may be used to provide additional security.

TUHF follows a progressive lending policy, encouraging clients to start with smaller buildings and increasing the size of their property portfolio as and when they gain the necessary confidence and ability in Residential Real Estate Management. This approach supports clients with a talent for real estate business and allows for an easy passage from part-time to full-time property entrepreneurship.

The two main factors that TUHF considers important when making its lending decision are:

1.	The collateral value of the building - TUHF will lend to a maximum of 80% of the collateral value of the building.
2.	The cash flow of the business. TUHF requires that the ratio of net income (after all expenses have been deducted) to loan repayment be a minimum of 1:3

TUHF’s ideal is to work with people who:

	‘Know the neighbourhood’ in which they’re investing.
	Have the right property management skills and network of contacts.
	Are proud of owning well-maintained, clean buildings.
	Are confident they will make sufficient profit from their business to keep going.
	Truly have the interests of urban regeneration at heart.