This page is intended for developing residential property other than for main residence. Where the property is intended to be for your main residence please see Self-Build Mortgages.
Property developers are taking advantage of some great finance options and returning to the market to develop land. We have seen lenders coming back into development funding, as demand for housing rises and the economic outlook improves. Lenders will always look to lend to developers, if they can see a good exit market.
Here are recent examples of enquiries that we have been asked to fund:
• Developer with ‘mothballed’ site now feels the time is right to build-out.
• Former care home with planning permission to convert to 8 residential apartments.
• Homeowner with large side garden obtains planning consent to build a house on the plot.
• Local builder had always built houses for other people but now wants to buy a site and build 4 houses to sell and make profit for himself.
• Experienced landlord sees opportunity to buy land and build houses to let and add to his portfolio.
• Property investor gets planning consent to build another storey on top of an existing block of flats.
As you can see, opportunities can be in very diverse situations. It’s not just property developers who can be approved. As long as you use a professional building contractor, or sub-contract to specialist trades, lenders will be pleased to consider your request for funding. All projects should have a recognised building warranty scheme, like NHBC or Premier Guarantee.
Our expert team of specialists will analyse your enquiry and usually quote lending terms within 48 hours. To have your enquiry assessed you will need to provide the following information:
1. A detailed description of the project
2. A recent CV to show experience in the property market
3. Statement of your business assets and liabilities (if a professional builder or property developer)
4. Statement of your personal assets and liabilities
5. Statement of your income and outgoings
6. Plans and drawings
7. Confirmation of Planning Permission
In some cases lenders will not even require to see proof of personal income, although in certain situations this could be requested. If capital is short at the outset, lenders can take a charge on another property as additional security .
We have a panel of Mezzanine lenders who are looking to lend on residential, commercial and semi-commercial projects throughout mainland UK. These lenders are inviting applications for additional funding, or ‘top-up’ loans on existing development projects, where a 1st charge ‘senior’ debt is in place.
• Up to 90% of build costs is available as standard
• Up to 95% of build costs with additional security
• Interest rates are from 1% per month
• Minimum loan size is £100,000 and there is no maximum
• Our lenders are flexible, very fast and extremely reliable
• There are no up-front fees payable
If your project is in need of a capital injection due to an existing funding shortfall, please contact us now. Our specialist team will put together a bespoke funding solution to meet the needs of experienced property developers.
Speak to an adviser today on 0117 223 2050
Great opportunities need great lending solutions!