Century Capital Q3 Market Report

Executive Summary

Paul Munford, CEO and Founder of Century Capital

Century Capital continues to make significant strides in the property finance sector. Our launch of Century PLUS this summer has generated substantial interest, solidifying our position as a leading provider of flexible lending solutions, but now with a nationwide focus. A strong pipeline positions us for significant growth in the last and busiest quarter of the year, paving the way for a groundbreaking year.

Century has moved from strength to strength this summer, including a standout week of completions that totaled £12 million. Deals were secured on a stunning property on Billionaire’s row as well as a luxury apartment in prime West London owned by a high-profile British businesswoman.

A series of new additions have bolstered our team, including Robert Fordham as our new Head of Operations and Loan Management, and Kash Moghul as Regional Manager in the sales team. Both are uniquely equipped to aid our expansion efforts, and will provide support in rolling out our services nationwide.

In other news, the team at Century have been busy behind the scenes. We have settled into our new Cork Street office, hosting welcome drinks for our partners. We also hosted our Autumn Breakfast Briefing at The Arts Club in Mayfair. The panel discussion centred around the current political landscape from a real estate perspective, and the impact the new Labour government will have on the London property market.

Additionally, I had the opportunity to speak about my career journey and what makes Century Capital unique on The Two Russells podcast with Russell Quirk and Russell Jervis, as well as a panel discussion at the UK Mortgage Finance Conference. Century also co-hosted Deal Catalyst’s Private Credit Club Mortgage Mixer for fund managers and industry investors.

At Century Capital, we are dedicated to propelling the business to new heights. We have set our sights upon some ambitious targets for 2025, and I am confident that with our expanded product range, funding lines and strong team, we will continue to grow steadily and sustainably to drive exceptional value to our borrowers.

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Market Insights

Luke Navin, Managing Director of Century Capital

The third quarter of 2024 has brought about significant change in the industry. A general election, falling interest rates and lower inflation is reshaping the property market as we know it.

At the end of July, the Bank of England announced the first of its rate cuts, lowering interest rates from 5.25% to 5%. Consequently, mortgage rates across the country decreased, providing much needed relief nation-wide and injecting fresh momentum into the property market. Then, in September, the FT reported that house prices were rising at their fastest pace since 2022. The number of properties for sale is also increasing, especially those that were previously buy-to-let properties, with private landlords racing to rid themselves of excess assets before any of Labour’s potential legislative overhauls come into play.

Lower mortgage rates are driving demand, although deal closures in prime and super prime London have slowed in anticipation of Rachel Reeve’s budget announcement on October 30th. Tax reforms are set to target the ‘wealthy,’ with whispers of increasing capital gains tax, stamp duty and abolishing the current taxation structure for non-domiciled individuals.

However, it seems as if Reeves is beginning to reassess this, or at least attempting to soften the blow of eradicating the non-dom status. News outlets are reporting that the Chancellor is considering the very real possibility that it will not raise as much revenue as expected, and that there will be a mass exodus of high-net-worth individuals. One Oxford Economics report suggests that the impact of the wealthy ‘voting with their feet’ could even cause the Treasury to lose up to £900 million in tax losses, as opposed to raising £2-3 billion by 2028/29. However, we feel as though the true impact of these measures will manifest itself as greater hesitation and increased anxiety among HNWIs, rather than outright desertion.

Here at Century, we are cautiously optimistic in our outlook for the reminder of the year, especially as it seems another rate cut is on the horizon. The property market retains its resilience and buoyancy, as it always does, and will hopefully remain largely unaffected by these economic and political fluctuations.

Q3 Featured Deals

1. Billionaire’s Row Property

Century Capital recently completed a first charge loan to fund the purchase of a notable new-build house, located on the prestigious Billionaire’s Row in Hampstead. The iconic property ticked all the boxes for the UHNW buyer, having been recently redecorated by a legendary interior designer. It was, until recently, the home of a high-profile England footballer. The current borrower is a property investor and founder of a thriving EdTech company.

• Loan Amount: £9,500,000
• Property Value: £14,500,000
• LTV: 65%
• 1st Charge
  
  

Century secured and completed this loan during the final days of summer, finalising the process from application to approval in just three weeks.

Property USPs

• Excellent security in a luxury location
• State of the art leisure facilities
• Elegant interiors
  
  
  

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2. Regent’s Park Purchase

Century Capital finalised a complex loan for a Regent’s Park apartment. The apartment was initially valued at £3.5 million, but was down-valued by an over-cautious surveyor to £3 million. Despite being offered a second valuation, the borrower declined on the basis that we would largely keep our advance the same, increasing our LTV from 65% to 70% to ensure there were still enough funds to complete.

• Loan Amount: £2,100,000
• Property Value: £3,000,000
• LTV: 70%
• 1st Charge
  
  

This deal was deemed slightly higher risk – potentially too high risk for a commercial bank. However, Century liked the asset and felt confident in its true value despite the lower valuation.

Property USPs

• Popular location with good transport links
• Close proximity to Regent’s Park
• Spacious living areas and balcony

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3. Hatfield House

Century Capital provided a 2nd charge loan for a detached six-bed property in Hertfordshire. The property boasts multiple fantastic facilities, including an outdoor pool, jacuzzi, and gym. It has also been recently refurbished to an excellent standard.

• Loan Amount: £1,225,000
• Property Value: £5,750,000
• LTV: 70%
• 2nd Charge
  
  

The borrower owns a luxury clothing company, with several high profile clients globally. They also have a substantial property portfolio. The funds from the loan will be used in order to inject cash flow into his business.

Property USPs

• Sought after location with good transport links
• Recently refurbished to a high standard
• Excellent leisure facilities and amenities, including a garage, gym and outdoor swimming pool.

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4. Central London Apartment

Century Capital completed a loan on a Grade II listed, 2-bedroom flat in prime West London, for a high-profile British businesswoman. The property is ideally located, close to local amenities and transport links, whilst also benefiting from a large communal garden and private terrace.

• Loan Amount: £375,000
• Property Value: £2,250,000
• LTV: 70%
• 2nd Charge
  
  

The borrower has amassed a large empire in consumer services, although mainly operates out of the US. She came to Century for our speed of delivery, as utilising a mainstream lender would have taken too long considering the short time scale they were working with. The speed in which this deal was completed is testament to our streamlined processes and highly experienced team.

Property USPs

• Desirable central location
• Access to communal gardens and rear terrace
• Good transport links and access to amenities

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