We provide some of the best development finance rates in the market. Our team is focused on finding the best financial solutions for your project, helping you get the best terms available.
Regulated By The Financial Conduct Authority (FCA) – FRN No 667602
When looking for property development finance it is important to identify the type of project being planned in order to access the correct funding product. Types of works can include:
New builds nearly always require development finance loans. once the project has completed, developers can sell or re-finance the properties to repay the development finance.
To accommodate this type of project refurbishment finance is typically the correct type of loan to use, however if the project is larger than the norm, development finance may be a better alternative.
A refurbishment loan is a type of bridging finance generally used for property renovations. It can be used for various improvements including, installing a new roof, general structural changes, building an extension, refurbishment, and decoration.
Property investors or developers may want to buy property which needs development or completion work still doing and are unable to get funding from their bank. This is a typical scenario when a bridging loan is a suitable alternative.
Development finance loans are typically paid in one of the following ways:
The total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.
This usually happens when the developer wants to keep the development for either personal use or for rental purposes.
Want to know how much you could borrow, or need to refinance your existing borrowing?
Use our online calculator to determine the loan repayment terms for your desired development or construction project. Discuss your quote with us for a quick decision.
The purpose of the facility is to provide the developer with additional time to sell their completed development, while keeping costs as low as possible.
Development finance helps maintain cash flow until the project is completed, as you may not need to use all your available funds.
To understand how a development loan can help you achieve higher profits, see the example scenario below*.
*This is an illustrative example only. Please contact our team to discuss your exact project quote in more detail.
| Description | Amount |
|---|---|
| Initial investment | £125,000 |
| Development loan | £575,000 |
| Total project build cost | £700,000 |
| Loan interest | £115,000 |
| Broker/lender fees | £4,500 |
| Solicitor fee | £2,750 |
| Completed sale price | £1,325,000 |
| Total profit on completed project sale | £502,750 |
