Property Development Finance:

Development Finance for land, building plots, new build or property conversions. Property Development Finance
Fast flexible funding arrangements for residential property development with up to 100% funding for developments in the UK. Loan amounts from £100,000 to £5,000,000.

Looking for a flexible financing package for developing existing properties or building new homes.

Property development finance is a form of secured short term funding specifically for builders and developers who need to finance site purchase and development cost funding. 

Typically the development financer would offer 70% of site purchase costs, followed by up to 100% of the total development costs. Although it is possible with some lenders to borrow 100% of the purchase costs and 100% of the development costs.

How long can the facility be open for? Development lenders will have guideline time scales for projects, for example a single house construction to completion may take 6 to 9 months. Yet a conversion of an existing building into apartments could take longer depending on the complexity of the build & refurbishments.

Once the construction works has completed the developer may keep the property on the development finance arrangement until the property has sold. In some cases a refinance of the property onto long term finance can be arranged to repay the development loan as well as borrow additional funds against the increase in value. 

Interest rates fixed for the duration of the loan in accordance with the individual requirements of development. Development finance rates will usually be quoted on a monthly basis between 1.25% to 2.0% per month.  

Residential housing development finance:
Development loans provide the funding needed to purchase land and finance the construction or conversion costs of the development. The loan can be made against the GDV or sale value of the property, this figure can be up to 80%.

Construction financing Loans are secured by way of a first legal charge on the site or property to be developed. The property or plot of land would need to be freehold or long leasehold. Funding can be provided to private individuals, partnerships and any UK registered legal entity.

Residential development loans for the small to medium developer are available to fund both 100% of the site purchase costs and up to 100% of the project development costs.

Popular schemes are Residential Refurbishments, Residential Conversions, Mixed use property of residential and commercial buildings conversions into apartments and flats for residential resale’s.

Distressed property purchase and acquisitions from property auctions:

A property may have been purchased from a property auction, in which case a 10% deposit is required on the day with the remaining 90% of the funds being required within 28 days.  Where the property is a distressed sale and un-mortgagable in its current form, then quick bridging finance should be used to secure the purchase before approaching a development finance lender. With a bridging loan secured against the property, any planning applications and development proposals may be submitted. With successfull planning gain there may well be an uplift in the property value which would form additional security and assist the LTV on development financing.

100% Residential Development Funding
How can you get 100% development finance?  Applicants for funding will need to show previous experience in developing property, have detailed site plans and architecture drawings. It is usual for all building and construction works to be carried out on a fixed price contract. The principal lender will always instruct their own quantity surveyors to ensure the proposed works, costs and build time are completely accurate to avoid any possibility of the client being in a position of under funding and hence not being able to complete the project.