Development Finance FAQs
We have funders who will fund these types of sites allowing you time to obtain planning permissions/change of use for further development.
Lenders will not be prepared to lend as much against the value of the land – we would look to obtain a loan equivalent to 50% of the value of the land. If there is an existing property on the site then this Loan to Value may increase.
Once Planning Permission is granted we can look to raise further funds against the increased value of the land and provide the funding you need for the build costs.
We will help you to put your plans together to ensure that when we speak to the lenders we will have a plan which works and which they can support.
Many lenders are happy to support first time developers and we can speak to these lenders on your behalf. To overcome your lack of residential property development experience the lender will want to ensure you have a good team around you who can give you the advice you need and may require a Fixed Price Contract from a reputable builder to ensure you have no unexpected cost over-runs. We will help you through this process and can recommend suitable professionals if needed.
All lenders have their own unique terms, conditions and policies regarding how much they are willing to lend. Calculating how much you will need to borrow means considering:
- The costs of the land
- Total development costs
- All applicable lender fees
- Solicitors/legal fees
- Brokerage fees (where applicable)
- Contingency costs
- Completion fees
Most development finance specialists offer up to 70% of the value of the land and 100% of the total build cost. However, it is possible to secure funding for 100% of the cost of the entire project.