Property Development Finance
Competitive Interest Rates from 5% Over Bank Base. Maximum Lending to 90% of Project Costs.
Development finance is aimed at the experienced property developer who has established themselves with working knowledge of the market, expertise in developing property, and have good financial standing. Development facilities can provide up to 70% of the Gross Development Value (GDV) which may include a roll up of interest and associated costs into the facility.
Lenders will usually require a cash injection to be funded by the client into the acquisition of the site, then the costs of development or re-development will be funded by the development loan facility, this line of funding may be paid in stages in accordance with the phased development and sales of the property
Large multi unit block developments may require pre-sale of phases before funding can progress to the next.
Property and Residential Development Finance Examples
- Residential development
- Commercial development
- Mixed-use buildings
- Property conversion
- Property renovation
- Property refurbishment
- Planning gain transactions
- Part built development refinance
Property and Residential Development Lending Guidelines
- £100,000 to no maximum loan amount
- Loan terms: 1 to 36 months
- 70% GDV for new developments
- Heavy refurbishment – 75% LTV
- Staged draw down of funds
- Interest roll up for no monthly payments
- Fast lending decisions
- 100% of construction costs funded in most cases
Single Residential Development
We can assist clients with arranging development funding facilities for all aspects of residential development including new build projects, comprehensive renovations, and redevelopment of existing property.
For smaller scale property conversions and renovation of existing property details of refurbishment products can be found here.
Redevelopments & Conversions
We can assist clients wishing to take an existing building to split into smaller units, such as a large period house into apartments.
Change of use can also be incorporated into the project when it is required to obtain necessary planning permissions to change the building from commercial use into dwelling houses, such as a former pub into smaller apartments.
Joint Venture Funding
Joint Venture funding (JV) is a profit share arrangement between the funder and the client. In most cases developers will only use a JV if they a development opportunity has become available, yet have already invested their capital in other projects.
A JV arrangement will usually fund both 100% of the site purchase and 100% of the development costs in return for a profit share of normally 40 to 50 percent in the sale of the completed development, split between the client and the joint venture partners who funded the acquisition and development, with the client providing the access or development rights for the project to proceed.
Development Finance Lenders
Our unrivalled panel of Development Finance lenders enables us to present more options than other brokers, meaning we can facilitate the cheapest & most appropriate funding package for your circumstances.
- No Valuation – we have lenders who do NOT require a 3rd party valuation report, and instead rely on their own due diligence.
- No Personal Guarantees – we have lenders who do NOT take Directors Personal Guarantees nor Company Debentures, at all. There are also other lenders who only take PG’s above a certain Loan to GDV.
- No Minimum Cash Contribution from the Developer – we have lenders who do NOT need the developer to put any cash into the deal if 3rd party equity is utilised. So, an equity provider can top-up the senior debt all the way up to 100% of project costs.
- Senior Debt up to 70% of GDV/ 90% of project costs
- Mezzanine Finance up to 75% of GDV, plus interest roll-up
- Equity Funding up to 95% or 100% of project costs, on a profit share basis.
- Minimum loan 100k, No maximum loan size
There are NO UPFRONT FEES at all, so you are free to discuss your requirements with us and put our services to the test today. With our depth of experience and expertise, we will provide you with an honest appraisal followed by illustrations of likely terms – all carried out quickly and efficiently.