Property Developement Finance is primarily aimed at property development companies. It can also be relevant for individuals looking to build a property portfolio or thinking of getting into property development, however most projects are set up via a Special Purpose Vehicle.
The main use of property development finance is to cover renovation or restoration costs on property before the developer can recover them by selling or renting it.
If you are involved in the UK building industry or make a living from Property Development and Refurbishment, then the good news is that Property Developement Finance is available for profitable projects which fit criteria.
Whether you’re a first-time property developer, building a property portfolio or an established property development business, the type of property development finance you will require, will depend on the project and the scope of the work being funded. There are numerous development finance lenders, from High Street banks to specialist funders and it will often depend on the level of borrowing and the type of project as to which lender is approached.
Property Development and Refurbishment loans are provided from £50K to £50m.
A brief synopsis of current key underwriting criteria:
Property Types supported – Houses, Terrace Houses, Mews, Flats.
Applications should be supported by good evidence of demand in the local area.
If properties are to be retained on completion, a long term re-finance option can be provided.
Mixed Use and Commercial Schemes can be supported subject to a demonstrable demand on completion.
Property Developments Projects should demonstrate sufficient margin to absorb any possible future reduction in the anticipated Gross Developed Value (GDV) of the project.
The borrower or proposed main contractor should have a good CV and be able to demonstrate experience in the sector.
Under normal circumstances we provide loans equivalent to 70% of the estimated GDV of the project however, for experienced property developers and or if additional security is available, we can often provide funding up to 100% of all site purchase, development and finance costs. We can also introduce Mezzanine Loans secured on a 2nd charge to provide any additional ‘top up’ funding.
For free, expert advice to help secure funding for your development project please call Carrera Finance today or submit an enquiry and we will contact you.
Our advice is offered freely, in confidence and without obligation.