Embark on your property development journey with confidence, backed by UK Commercial and Development Finance. Our comprehensive development finance solutions cater to various needs, offering simplicity, cost-effectiveness, and a guaranteed exit strategy upon project completion.

New Build Residential: Crafting Your Dream Home

Imagine building your dream home to your exact standards – a reality with development finance. Our products are designed to be straightforward, cost-effective, and provide a secure exit strategy post-completion.

New Build Multi Unit: Maximizing Opportunities

Discussing multi-unit projects with builders is common, and our doors have witnessed a surge in such projects since 2020. Developers seeking funding for constructing multiple dwellings can benefit from our diverse lending options, including access to 100% lending propositions, making it ideal for those averse to personal guarantees or lacking immediate cash flow.

Commercial Development: Transforming Spaces in the New Normal

The aftermath of Covid-19 has transformed the property market, leaving many premises vacant or derelict. For bold investors, this presents a lucrative opportunity to renovate commercial properties into modern workspaces or redevelop them into residential dwellings.

Key Features of Development Finance:

Loan Parameters:

• Maximum Loan-to-Value (LTV): Typically up to 65% of the gross development value.
• Lending Terms: Flexible, ranging from 12 to 36 months.
• Early Repayment: No penalty charges for early repayment.
• Interest Rates: Competitive, ranging from 0.69% to 1.15%, dependent on project value, risk, builder/developer experience, and collateral.

Lender Fees:

• Typically 2%-3% of the net loan advance.
• Additional fees may include valuation fees, legal fees (both yours and the lender’s), and a security fee.

Exit Strategies:

• Sale of developed properties is the primary strategy expected by finance lenders.
• Refinance of developed properties.
• Other assets securitized by the finance lender.

Contingency & Fees:

• Finance lenders usually require a 10% contingency built into your schedule of build costs.
• Consider professional fees such as monitoring surveyor or quantity surveyor fees, insurance, and warranty costs for the build.

Timing & Cashflow:

• Confidence in completing the build within the lender-set limitations.
• Adequate cash flow to support the project before funds are drawn down from the finance lender.