Lanyard Financial Corporation has been involved in mortgage secured lending since 1999. The principal focus of the lending business consists of bridge loans in amounts of approximately $1,000,000 to $15,000,000 with first mortgage security against real property in situations generally "just outside the bank envelope". The majority of Lanyard loans pay monthly interest at a rate in the order of 6% to 9%.
Lanyard's lending program focuses on interest-only loans with a term of one year, extendible for one additional year at the option of the borrower. Lanyard offers no penalty on pre-payment subject to minimum interest in the order of six months. A reserve to cover interest not payable from cash flow can be arranged from loan proceeds for real estate assets such as land or hotels (during months of low occupancy). A project reserve to cover development costs can also be established from loan proceeds for development projects in certain circumstances. Lanyard does not provide construction financing. Second mortgage loans can be arranged in cases where lending value is relatively low in regard to the value of the underlying security. Fees are payable by the borrower from the proceeds of each loan arrangement.
Lanyard has also participated in a number of real estate investment transactions involving the purchase of cash flow producing assets, including apartment buildings, commercial buildings, parking lots, hotel operations and development land. The most recent investment property divestiture, being a medical office building located in Victoria, B.C., resulted in a 30% simple annualized return to investors over a six year holding period. – less