Development Finance
What is Development Finance?
Development Finance is when funding is needed to support various stages of a construction or real estate development project. Whether you’re planning ambitious refurbishments, or ground-up new builds, we are here to assist you with achieving your property development goals.
Our lending panel spans across the UK with more than 55 lenders to date. We understand what each of our lenders are looking for so we only approach the right lenders for your project from the outset.
With our experience in the industry, we have already secured finance of up to £500 million for our clients. Using our in-house professional debt and mezzanine model we can work with you to assess the viability of the development and how the various forms of finance impact the profitability of your scheme and the potential contribution required.
Types of Development
Residential
Any development scheme that creates homes to either be sold or let. These types of schemes do not require the units to be pre-let or sold to secure funding.
Commercial Development
Any development scheme that creates units or buildings to be used by business’ or for a commercial purpose. For example industrial units, business parks, retail parks, hotels, office blocks, restaurants, cafes etc. High street banks would require evidence of pre-let or pre-sale before securing funds.
Useful Information
Take a look at our Useful Information section for some extra guidance and insights about what you are requesting.
Lending Options
High Street Banks
- Loan Size: No minimum loan size. Maximum 60% loan to cost/maximum 50% loan to end value.
- Rates: from 2.5% to 3.5% plus base
- Lending fee: typically 2% in, and 1.5% out
- Experience: 3 yrs minimum (similar sized schemes)
- Loan Costs: Rolled
Specialist Banks
- Loan Size: Minimum £500,000. Maximum 85%/90% loan to cost/maximum 70% loan to end value.
- Rates: from 5% plus base
- Lending fee: typically 2% in, and 1.5% out
- Experience: 2yrs minimum (similar sized schemes)
- Loan Costs: Rolled
Specialist Non-Bank Lenders
- Loan Size: Minimum £150,000. Maximum 90% loan to cost/maximum 75% loan to end value.
- Rates: from 5% plus base
- Lending fee: typically 2% in, and 1.5% out
- Experience: Experience is not required
- Loan Costs: Typically Retained