Property Development Finance
- Cashflow Worksheet
FREE Cashflow & Build costs MS excel worksheet.
This is the same one we use to construct the detailed cashflow and determine the schedule of payments required.
Bridging loans & Development Loans
Bridging loans are often used in property transactions, they can be used to break property chains, where you need to buy that next property before selling the current property. Or perhaps you need to buy a property at undervalue, or it needs renovation and doesn’t quite fit mainstream mortgage lenders criteria until the kitchens fitted etc.
When a Bridging loan is used for larger property development eg the building of a house from ground up, or building of several houses, then rather than being called bridging finance its more often called a Development loan or Development finance.
Need a quick quote on a Bridging loan?
Just get in touch with what you need the bridging loan for and how much finance is needed and for how long, and we can normally quote you initial terms within 24 hrs
Property Development finance
Development Finance – Do you have a building project that needs some finance? Whether your project is a one off new build, large extension or loft conversion or a site with multiple new build properties, we can HELP YOU get the finance you need.
We can help you with;
- Getting a lender in place that WILL lend
- Planning out cash-flow
- Ensuring you get the right funds at the right time
- Handling all the finance paperwork.
Property development finance made easy. If you are a builder, then you’re good at what you do – building houses, but you might not be so great at sifting through lenders criteria and filling in multiple forms, creating cash flow forecasts and build schedules to get finance. Let us help you – we have commercial finance lenders that can lend upto 60% to kickstart projects and fund 100% of all build costs. From direct commercial development finance lenders to Private Investors we can help you search for the funds to finance your project.
Help finding 100% property development finance
We can arrange finance that suit you and your business from our large panel of lenders.
- Same day decision in principle
- Upto 18 months terms
- Upto 100% development finance
- We can help structure the finance / cashflow
- Residential development finance or commercial
We can compare development finance lenders, to ensure we get the right property development finance lenders that will lend on your specific project, as some have regional areas they will / will not lend on. So for eg if you need development finance in Manchester, Bristol, Leeds or Birmingham etc we can search for lenders that will lend in that area. Many also have minimum property development finance loan amounts. Meaning that searching blind can take you days if not weeks. Let us help you find the right house building loan for you.
Property Development loans
we compare development finance lenders – leaving you to do the bit you are really good at – building !
”Can I get 100% development finance?” Yes you can.
We have lenders that will fund 100% of the purchase price and 100% of the development, ideally the lenders would like some additional security to be able to offer that. In simple terms the lenders want you to have ‘some skin in the game’. If you have nothing to lose, its easy for you to walk away, and they do not want a half built housing site in the west midlands ! They want you to have the drive to succeed and make the projected profits.
Most builders don’t actually need 100% finance, as often they either already own the land or can get a deferred payment option put in place. In these cases you get 100% funding of the build costs.
Interest amounts charged on these property development and house builder loans is typically retained by the lender until the construction project completion. At that time, the amount of the loan is paid back by the borrower plus the accrued interest. This means that the borrower doesn’t have to make monthly payments on a loan. Most developers and builders agree that making monthly repayments can be both inconvenient and difficult. This is mainly because cash flow rates can be nearly impossible to predict during the property construction period. Many lenders also prefer to receive a full, one-time repayment of a loan for funding build costs when building is completed.
Since property development loans are short-term loans, lenders have no problem with retaining interest charges until project completion. These loans are commonly issued for a time period equaling 6 to 18 months. Simple property renovations may require only three months to finalise
100% development loans
100% development finance is available with extra security eg your own or another property that a comfort charge can be placed on
”I’m new to this can i still get it ?” Yes – It is often used by experienced builders financing the development for a new build site, but equally its used by homeowners, or builders new into the property building market. Eg you might have been a builder doing extensions and renovations, and want to break into doing your own new builds
”What will I need ?” – Ideally we would like people to either be able to put in 50% of the initial site purchase cost themselves. Or you can negotiate with the landowner for a deferred purchase, whereby you pay him out of the profits at the end.
Ideally no major bad credit eg Bankruptcy, IVA’s or ccjs in the last 2 years, although this is non status lending the lender will still want to know you are a good overall risk.
We can help structure the deal to be acceptable and also guide you to who WILL lend to you based on the proposed development and your background.
Previous Bad credit ?
”I have previous bad credit – can i still get it ?” – We arrange finance for businesses in all situations. We can even arrange finance for business where the directors are previously bankrupt, as long as they have been discharged for 2 years +
Unlike residential mortgage finance, construction finance is not credit scored.
Dealing with these lenders, we get to know, what each one typically likes to lend on, what development projects they would fund 100% and if your a homeowner seeking self build then who will lend regulated development finance, as not all lenders can lend on regulated finance deals.
We care & are here to help you !
If you have a project and need help building the case for finance, let us help you – OK you might be great at building houses, but finance structuring, cash flow forecasting and form filling ! – might not be your strong areas.
On property development - What is 'Exit finance' ?
For the vast bulk of properties the exit route for development finance is the sale of the properties once built. It can be common for a few properties to be ‘still left over’ awaiting a buyer at the end of the project. This can frustrate the builder as often a large proportion of the profit is tied up in the last half dozen buildings. That is where you might need to use a development finance exit route . Quite simply if the properties are residential houses, we can help put in place temporary BTL mortgages, thus releasing 75% to 80% of the property equity, meaning the builder can use those monies to fund their next development. so if you need a development finance exit route sorting, just get in touch !
If you need a development finance exit route for commercial properties, then we can look to source a suitable commercial finance deal to enable the release of equity.
Property Development Finance
Development finance Lenders
We work with a wide range of development finance lenders that lend across England and Wales.
We are very keen to work with Builders seeking construction development finance in; London, Bristol, Birmingham, Hereford, Gloucester, Aylesbury, Oxford, Luton, St Albans, Cheltenham,Worcester, Reading, Bournemouth, Poole, and Exeter