Development Finance General Lending Criteria:

Secured on UK residential or commercial property and land by first legal charge. All Freehold properties considered.

Min Loan Size £50,000 to £5 Million (larger facilities available)

Self Cert non status funding ideal for self employed property developers and builders

Stage payments. Loans may be released in stage payments to suit the progress of the building or development

Land purchase finance to 100% of purchase price

Development and renovation costs financed to 100%

Some previous property development experience required or project managed

No loan payments for the duration of the build - Interest roll up or by monthly payment

Loan terms of 3 months to 18 months

Total loan including interest up to 80% of the finished project value GDV

Planning Gain Finance. Funding to acquire sites with planning potential

 Adverse or impaired credit cases considered. Arrears & CCJ's are not usually a problem

Case Study: Residential Development of Apartments

A Client had an opportunity to purchase a large residential property that had been empty for a number of years, although not in a mortgagable condition itself we were able to arrange 100% finance of £650,000 to purchase the property, and a further facility for the development loan of £710,000 over a 12 month term. The property was converted into a modern development of 2&3 bedroom apartments which were sold on and mortgaged to a buy to let facility on completion.

Case Study: Self Build Barn Conversions in Cornwall

 

A site consisting of a cornish farmhouse and several stone barns with full planning to convert into 3 residential dwellings. The client was not an experienced developer but was able to use his fathers building firm to oversee the project. We were able to arrange a development loan with staged payments over a 12 month term for a total gross development value of £1,805,000. 100% of the development costs were funded. Two of the barn conversions were sold repaying the borrowings and the third was retained by the client and re financed on a Buy-to-let mortgage.

Case Study: Land Refinance for planning gain and loan consolidation

We were aproached by a client who owned a property with a peice of land adjoining the title with planning potential. We were able to arrange legal seperation of title on the land and then raised £60,000 on a non status self certified loan based on the value of the land. The loan was to consolidate some home borrowings and to pay for professional fees drawing up plans of the proposed build. 3 months later with a full planning gain of a 3 bedroom residential dwelling the plot value was signficantly increased was then sold at a good profit which resolved our clients short term cash flow situation.

Case Study: Land Refinance for planning gain and loan consolidation

Auction purchase of a commercial building with outline planning for 5 residential flats. Our client purchased a fire damaged public house which had stood empty for the past 4 yrs.  Because the property was not mortgageable our clients bid was sucessfull paying £160,000 for the property with no planning. We were able to finance the property in the initial stages of planning approval. With planning approved a development loan including roll up of interest was approved for 100% of the costs to enable the build to go ahead. The project was finished in 10 months and flats sold at the uplift in value.

Case Study: Land agent obtains 100% funding for site purchase

A run down commercial property in an area zoned for residential development had been identified by a land agent. With a strong likelihood of obtaining residential planning to convert the site into residential development of housing, he sought finance to purchase the site while it was still classified as commercial. As it stood the site was only valued at £650,000, yet to secure the purchase a price of £720,000 was agreed. Finance for 100% of the purchase price was provided to secure the purchase. Once full residential use was granted the site was re-sold to a developer for £1.48 million