Development Finance is a highly specialised area which considers not only what a property is worth now but also what it will be worth once developed. This means you can lend both a portion for the purchase and up to 100% of build costs.
Each development deal is bespoke, the interest rate and fees depend on the overall risk profile of the case and general market conditions. The ability to access Development Finance can significantly increase the size of projects you are able to complete.
Development finance is lending secured against what a property will be worth once the
project is complete. This means that you not only borrow for the purchase but can get your
build costs as well.
Historically this market was only open to experienced developers with loans of over £500k.
Today many lenders still have minimum loan amounts of £1m. In the recent period some
Lenders have started to compete at lower loan amounts, we can now have place cases with
loan amounts as low as £100k.
As long as the numbers work we can fund a wide variety of commercial and residential
Unlike mortgages most lenders do not have necessarily have pre determined interest rates
and fees. Each proposal is assessed on its merits and overall risk profile.
Lenders tend to prefer cities and areas they are familiar with. However we can find solutions for projects located elsewhere.
It helps, but we can agree deals without it. This depends on the overall risk profile of the case.
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