Skip to main content

Providing development finance for your projects

Development Finance

We are able to fund the construction and heavy refurbishment 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 not required. In relation to commercial projects, any existing or future leases exchanged on the property would be a relevant factor. The borrower’s track record of delivering projects of a similar size and complexity is key for us and a clear and viable exit is essential to a successful prospect.

The typical exit for a residential development is the sale of individual plots or units, the proceeds of which go towards reducing the outstanding interest and capital. In the case of commercial 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.

Key Highlights

  • We provide fast decisions, suitable for auction finance.
  • Terms are available up to 18 months, though occasionally longer.
  • We price on risk with monthly rates starting from 1%.
  • Loan size between £50k and £2m.
  • We usually look to a maximum outstanding loan and interest at 70% of the gross development value. Some flexibility can be provided on a case by case basis.
  • We roll up interest to the end of the term to facilitate cashflow.
  • 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 development finance and so we are unable to arrange development finance on properties in which the borrower, or members of their immediate family, have lived or intend to live in.

If you or your client has a development project which you would like to discuss, please get in touch using the form below or otherwise contact us on 01942 295 982.