We are able to fund the construction of residential and commercial developments, including new houses or apartments. These can be amongst the most complex projects.
In the context of residential developments, some pre-sales are usually required and in relation to commercial projects, any existing or future leases exchanged on the property is also a relevant factor. The borrower’s track record of delivering projects of a similar size and complexity is an important factor for us and a clear and viable exit is essential to determine at the outset.
The typical exit for a residential development is the sale of individual plots or units and the proceeds of which go towards reducing the outstanding interest and capital. In the case of commerical developments, the typical exit strategy is by selling the whole development to investors or via a refinance with a longer term lender. See some recent case studies.
– Terms are available up to 12 months, though occasionally longer.
– Loan size between £25k and £3m.
– We usually look to a maximum outstanding loan and interest at 65% of the gross development value. Some flexibility can be provided on a case by case basis.
– We can roll up interest to the end of the term to facilitate cashflow.
– Some pre-sales are usually required.
– We require a first legal charge on the property.
– Clear exit plan to be determined at the outset.
– Transparency on all fees guaranteed.
– No early repayment fees.
– We provide unregulated bridging finance and so we are unable to arrange bridging on properties where the borrower or members of their immediate family intended to live in, now or in the future.
If you or your client has a development project which you would like to discuss, please get in touch using one of our forms below or otherwise contact us on 01942 295 982.