Development Finance Criteria
The development finance criteria will vary from case to case and lender to lender so we make efforts to find the best deal to fit your particular project.
What is the criteria for lending development finance?
As a general rule lending criteria will be based around the following:
- Loan size £30,000 with no upper limit
- Term of loan up to 24 months
- Interest rates from 7% p.a.
- Interest will be rolled up throughout the project so no monthly payments are required
- Lender arrangement fee 1 – 2% of loan amount (we may be able to add this to the loan)
- In certain circumstances (particularly where the LTV is high) an exit fee may be payable
- LTV up to 75% of land purchase and 100% of build cost
- Drawdowns will be made in line with your cash flow requirements subject to a visit by a QS/monitoring surveyor appointed by the lender
- A valuer appointed by the lender will undertake a valuation of both the site prior to development and establish the value once the properties are built (known as the Gross Development Value or “GDV”). The valuer will also comment upon the proposed build cost to ensure they are in line with industry standards.