Working with specialist lenders we are able to arrange property development finance for residential and commercial projects.  Finance can be arranged for experienced developers and clients taking on their first property development projects. Funding is available for private individuals, partnerships and limited companies.  Although some business experience is desirable property development loans can be arranged for novice developers and experienced developers. A property development loan is secured against property in the same way as a mortgage.  The lender secures their interest in a site by way of a legal charge over the site.  This mortgageis then redeemed on the completion and subsequent sale of each unit.

One of the most important factors when evaluating a property development project is the value of the property when all the work is finished.  This is often referred to as the Gross Developed Value (GDV) and lenders will use a percentage of this value to decide the upper level of funding.

High street banks typically finance around 65% of a site purchase price and 65% of the development costs.   Although this is acceptable for some development projects there are plenty of developers who are unable to raise the necessary capital.  Specialist property development lenders are able to offer higher levels of finance than the mainstream banks and are also able to work to tighter deadlines.  Working with a commercial finance specialist it should be possible to find the right lender for any viable project.

After all, getting a quick decision on a property development finance proposal can make all the difference. 

Property refurbishment:

These types of projects usually involve the purchase of a residential property and some cosmetic refurbishment. Typically a new kitchen, bathroom, central heating and windows are the extent of works. Refurbishment projects usually turn round very quickly as planning permission is not typically needed.

Where there is a considerable increase in value property development loans can be based on the developed value rather than the purchase price.

Property conversion:

Where more substantial work such as an extension, conversion of an existing property into flats, or other structural restructuring is undertaken the finance needs to be planned accordingly. Where planning permission is required there is always the possibility of changing specifications and other delays so working with specialist property development lenders offers a real benefit.

• 10% deposit only - Can borrow up to 90% of buying plot
• Cashflow - Can borrow up to 90% of buildings costs
• Finance When You Need It - Funds released at different stages of development
• Advance stage payments - this helps developers with their cashflow
• Borrow up to £500,000 - allows developers to focus on bigger projects

For further assistance, call us on 0800 612 7688.