If you're looking for funds to build a commercial or residential property or development, you'll require property development finance rather than a mortgage. Development finance is a short-term funding option, usually up to two years, to assist with the purchase and build costs of property development.
If you're embarking on a property development scheme, development finance can fund your project to completion.
Typically development finance is relevant if you’re one of the following:
• An experienced property developer seeking new or alternative funding arrangements.
• A first-time or one-off developer requiring the best possible finance.
• A property investor wishing to add value to your portfolio by developing properties.
Development finance is a specialist form of lending that comes in two parts – the first element funds the purchase price of the development site/property, while the second part pays for the cost of the building works.
The amount of funding you’ll be eligible to receive will depend on a professional valuation report based on the site’s current value, expected build costs and the value of the completed project.
The development finance sector has grown substantially, and now mainstream banks, merchant and investment banks, private lenders and specialist investment funds provide funding. However, as each of the lenders has different credit assessment criteria, you might find it beneficial to use a specialist broker to assist you in finding and securing the right loan product.
Because we play by the book we want to tell you that...
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1%, but a typical fee is 0.3% of the amount borrowed.