Property Development Finance
Competitive Interest Rates from 5% Over Bank Base. Maximum Lending to 80% 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 60% of the Gross Development Value (GDV) which may include a roll up of interest and associated costs into the facility.
Lenders will usually require at least 40% equity of the GDV 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
Planning gain transactions
Part built development refinance
Property and Residential Development Lending Guidelines
£100,000 to £15m
Loan terms: 1 to 36 months
60% GDV for new developments
Heavy refurbishment – 70% 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
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.