Property Development Loans and Refurbishment Finance
If you are involved in the building industry or make a living from property development and refurbishment then funds are available for profitable projects. Property development loans and refurbishment finance are provided from £50K upwards.
A brief overview of current key property development lending and underwriting criteria:
- All residential Property Types supported – Houses, Terrace, Mews Properties and Flats or Apartments.
- Applications should be supported by good evidence of demand in the local area.
- If properties are to be retained on completion a long term re-finance option can be provided.
- Mixed use and Commercial Schemes can be supported subject to a demonstrable demand on completion.
- Developments should demonstrate sufficient margin to absorb any possible future reduction in the anticipated Gross Developed Value (GDV) of the project.
- The borrower or proposed main contractor should have a good CV and be able to demonstrate experience in the property development and refurbishment sector.
Under normal circumstances we arrange loans equivalent to 70% of the estimated GDV of the project. However, for experienced developers and if additional security is made available, we can often provide funding up to 100% of the site purchase, development and finance costs. We can also introduce Mezzanine Loans secured on a 2nd charge to provide any additional ‘top-up’ funding.
Who can borrow ?
We provide Property Development Finance for experienced Builders and Property Developers and to those undertaking their first project with the contracted support of a recognised and registered builder. It will be necessary for all applicants to provide personal and business profiles and we will assist you with these as necessary. For an immediate discussion on your requirements and the funding options available please contact us today.
How much can you borrow?
We provide Property Development Loans from £50k up to £50 Million. In general terms we can provide Senior Debt finance to cover up to 60% of the site acquisition costs ( or current value if the site is already owned ) and up to 100% of the development costs which is drawn down at pre-agreed project stages. As a general principle, the level of funding available will increase the greater the profitability of the project.
We also provide top up or so called ‘Mezzanine’ finance which allows additional funding to be advanced in addition to the ‘Senior Debt’ up to a maximum of 90% of the total project costs. For clients who can offer additional property as security we can often make up any shortfall of funds and we will be happy to discuss the broad range of alternative funding options available.
Property Development Finance -What other costs are involved ?
In all cases it is necessary for the project Gross Developed Value (GDV) and all development / construction costs to be independently assessed and verified prior to the loan facility being formally approved. Such valuations and professional services are at the expense of the borrower as are legal expenses.
What interest rate and fees will you pay?
This generally depends on the amount you wish to borrow but rates currently start from 7 % per annum and will generally be geared to the overall loan to GDV requirement. We offer loans from our own synidcated fund and also work with 30 other active lenders in the UK market. Our charter and committment is to secure you the most competitive finance package for your development project. Facility set fees are generally incidental to the overall project cost and we agree these at commencement of the project. Time and again the actual savings we achieve for our clients cover the project fees many times over.
How do I move forward to secure a formal offer of property development finance?
As a starting point we need to get the basic information about you, your background and of course to the Development or Refurbishment project being undertaken. You can provide this to us either by completing our on-line enquiry or by calling our office as below and speaking to a member of our team.
For free, expert advice to help secure funding for your development project please call us today or submit an enquiry and we will contact you. Our advice is offered freely, in confidence and without obligation.