Development Finance FAQ

Q Can you arrange finance for land without Planning Permission?

A YES. 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.

Q Can you arrange funding for first time developers?

A YES. 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.

Q Can you provide funds for schemes under PDR (Permitted Development Rights)?

A YES. WE have secured finance packages for these types of permissions and have many lenders happy to look at these transactions.

Q I have a poor credit report – can I still obtain funding

A PROBABLY. Lending against residential property development schemes is more about the scheme and the experience of the development team – rather than the credit standing of the individuals involved. That said, however, in some circumstances the reasons for the poor credit will put lenders off and so funding will not be available. Please talk to us and we will do our best to help you.

Q Can you arrange funding for Limited Companies and Partnerships?

A YES. If you apply for funding through a Limited Company then the lender will require Personal Guarantees from the Directors but otherwise all will be the same as borrowing in your personal name(s).

Last Updated: Jan 18, 2018 @ 4:24 pm

UK Property Finance is Authorised by The Financial Conduct Authority (FCA)

Association of Bridging Professionals
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