Development finance is a type of short-term loan created in particularly for any type of new property development consisting of residential property, HMOs, student accommodation, commercial property, social housing, starter units and lots more.
The funding is normally spent to cover purchase and building costs connected with the development.
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Types of development finance we introduce businesses and individuals
- Commercial property development finance.
Commercial property development finance is a type of loan used to fund the costs associated with acquiring, constructing, or renovating commercial properties. It’s typically used by developers and investors who are involved in projects like building new office buildings, industrial units, retail spaces, or refurbishing existing commercial premises. These loans are structured based on the anticipated future revenue or value of the completed project.
- Residential property development finance.
Residential development finance is a short-term loan designed to fund the building, renovation, or conversion of residential properties. It’s a crucial tool for developers who don’t have enough cash on hand to finance projects like new builds, renovations, or conversions. The loan is typically secured against the property or land, with the loan amount based on the expected value of the completed project, known as the Gross Development Value (GDV).
- House in Multiple Occupation (HMO’s) development finance.
HMO (House in Multiple Occupation) development finance is a type of commercial finance used to acquire and develop a property for conversion into a shared accommodation unit where multiple tenants share common facilities. It’s a common investment strategy, especially for properties in areas with high demand.
- Social housing development finance.
Social housing development finance refers to the various funding mechanisms and financial structures used to support the creation and improvement of social housing, which is housing intended for people who cannot afford to purchase or rent homes on the open market.
- Student accommodation development finance.
Student accommodation development finance is a type of funding that supports the development of properties specifically designed for student housing, such as purpose-built student accommodation (PBSA) or conversions of existing buildings. It can be used for various stages of the development, including land acquisition, construction, and renovations.
- Newly built homes development finance.
Newly built homes development finance refers to short-term loans used by property developers to fund the construction of new residential properties. These loans are typically repaid when the development is completed, and the properties are sold or refinanced.
We can introduce you to lenders who have loans which can support your needs during the development procedure. Through acquisition, planning, development, sale or rental.
FAQs
The lending decisions of the lenders we would introduce you to are based on their lending criteria and in some instances subject to credit check and an evaluation of individual circumstances.
Our lenders have all the development finance products design to help you achieve your property ambitions.
What is development finance?
Development finance is a type of short-term loan created in particularly for any type of new property development consisting of residential property, HMOs, student accommodation, commercial property, social housing, newly built and many more.
The funding is normally spent to cover purchase and building costs connected with the development.
Would I get support during the project development?
The lenders we will introduce you to would support you throughout the lifecycle of your project
What type of lending products can I get support from?
You can get support throughout your development process for your requirements:
- Acquisition
- Planning
- Development
- Sale
- Rental
Can I have drawdown request:
Your drawdown requests are prioritised to keep your development moving.
How does development finance works?
The loan is prepared against a plan for development, indicating once the project is underway, the funds will be issued in stages according to how far along the build is.
The loan will be paid off at the end of the project in a lump sum, generally funded by the sale or longer-term rental of the development.
On the other hand, repayments can sometimes be staggered as and when units are sold.
How quickly can you get a bridging loan for development finance?
It takes about 4-6 weeks to get a development finance loan by the lenders we would introduce you to, which is marginally longer than a standard bridging loan.
This is because the application process requires a thorough site valuation to ensure the lenders offer the proper support needed for the project.