Some examples

Case Studies

Property Development Finance

If you are building 1 or more properties from the ground up or conducting a large redevelopment of a property, then you require Property Development Finance.

Acceptable schemes include:

  • Residential housing (1 unit to 100 units)
  • Commercial property
  • Student developments
  • Care home/specialist care developments
  • Commercial to Residential conversions

 

Development experience is always preferred, however first-time developers can also get finance.

We can finance:

  • Some or all of the development costs
  • Some or all of the land cost
  • Some or all of the entire scheme

 

Affordability and repayment

Repayment is typically on an interest only basis.  Interest can be serviced monthly, or can be rolled up and deducted from the loan amount.  Ultimate repayment comes from the sale or refinance of individual properties.

Ownership Structures

Customers are usually builders who are constructing themselves, or can be project managers/professional developers who have brought in a builder in to complete the scheme on their behalf.  Acceptable customer types include:  Sole Trader, Partnership, Limited Company (Ltd) or Limited Liability Partnership (LLP).

Loan terms and lending criteria

Lending terms are based on the current land value, development costs and completed property value (GDV).  Standard financing is available up to 100% of the build costs and 70% of the GDV.

Pricing and fees

Loan terms are usually capped at 2 years and interest rates are quoted monthly.  Pricing can range from 1-2% per month.

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Need help with Property Development Finance?