Finding The Best Development Finance Deal For Your Circumstances
Development finance can be the ideal solution for property investors looking to fuel their projects. Whether you’re constructing new build houses or carrying out a commercial refurbishment, this type of short term loan can help you see the development through. However, the path to finance approval isn’t always simple, and you may be getting frustrated by the process. That’s where we come in! Our team of expert commercial finance advisors are here to ensure you get the funds you need to progress with your plans full steam ahead. With us on your side, development finance is easier than ever before.
What is development finance?
Development finance is a term used to describe a short term, secured loan that is provided to fund the development, conversion or refurbishment of properties during the build. The projects funded by development finance can be anything from new builds to property restorations. They work differently to standard mortgages, but can be a great solution for property investors who need short term finance to keep their project moving. Don’t worry; though it might seem complex, our expert development finance advisors will guide you through the process. Talk to us today!
Who can apply for development finance?
Development finance is normally applied for by the following people:
- Individuals.
- Partnerships.
- LLPs.
- SPV limited companies.
- Trading businesses.
- Overseas investors planning UK developments.
Maximise your chance of approval with specialist advice from an expert in Development Finance
How much can I borrow through development finance?
The maximum amount you can borrow through development finance may be determined using the following factors:
- Day One Loan – an advance at the start of the development, limited to 65-70% of the property’s value.
- Loan to Cost – an advance as a percentage of the projected final development cost, usually 80-90%.
- Loan to GDV (Gross Development Value) – a loan as a percentage of the final gross development value, usually 60-70%.
Do I have to pay interest during the loan period of development finance?
It’s rare for lenders to expect repayments during the loan term. Typically, lenders will allow you to roll up the interest during this time to keep costs low, and repay everything at the end of the term when the loan is repaid too. Of course, this will all depend on the amount of finance you need. The more interest left in the project at the end, the more interest you will amass. It’s important to get expert advice before committing to a development finance loan you’re not sure about. Working with a commercial loan advisor like When the Bank Says No can ensure you are getting the right deal for your circumstances.
Development finance FAQs.
Development Finance Calculator
Specialist advice for development finance.
When the Bank Says No has helped property investors and developers across the UK and further afield access the finance they need to fuel their project. Whether you’re transforming a Buy to Let into a higher value property, or building a brand new commercial space, we’re here to help you achieve success with your short term finance application. We understand the market for development finance loans, and will work tirelessly to pinpoint the most suitable lender for you.
We help you fund your project.
Don’t struggle on your own. Development finance functions differently to other forms of secured loan, and it can be frustrating trying to understand all the technicalities and implications – especially when you just want to proceed with your project! Our specialist team of commercial finance brokers are here to take away the stress. We’ll do our best to get the cash flowing and your project moving, whatever obstacles you face.
