construction finance finder

Fast approved  Development Finance

Speak with an Advisor now !

9am – 9pm  6 days a week

CALL NOW 0800 246 5698
Book FREE 30 Minute Call

100% Joint Venture

Funding covers 100% of Land, 100% of Build costs, all Legals, Prof fee's and sales costs.
Go to JV Calculator

75% LTV Build Finance

75% LTV Development Finance / 100% of build costs with support on Presales, & exit finance
Calculate Lending

75% Development Finance

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.  

we can help with the  application,  stage payments and exit finance if required.  we treat all our clients as friends, rather than just a number or enquiry. This enables us to develop long terms relationships to help you reach your full potential.  

Let us help you make your next project a success.

  • Upto 75% LTV Development Finance
  • +10% day 1 presale lending boost
  • 100% LTV finance ( with additional security)
  • 100% Joint Venture finance ( 2 - 8 houses only)
  • Funds issued in as little as 2 weeks
  • 65% LTV - Land with outline PP
  • 75% Exit finance at low rates

Click to read our 50+   reviews

.. David was absolutely superb in explaining to me all the ins and outs of equity release in plain English. I would recommend him to anyone...
Brian - Doncaster
Brian - DoncasterFeb 2023
..brilliant and patient when explaining the process to me about my equity release mortgage in language that I easily understood....
Phil - Lake District
Phil - Lake DistrictJan 2023
...David went above and beyond to explain all my options and figured out the best equity release option for myself as an individual...
Emily - Hereford
Emily - HerefordOct 2022
Used David Farrell for a second time for a remortgage. He made things stress free and easy... explained everything along the way and was on the end of the phone for any queries I am 100% customer for life ...
Rich - Gloucs
Rich - GloucsDec 2022
...Ours was not a straight forward equity release with having a pylon near by which equity release firms apparently don't like and he managed to get a better deal than what they had initially offered...
Brian - Doncaster
Brian - DoncasterSept 2022
David thank you so much for helping my mum with the equity release, you really did explain it so well, thanks again
Ron - Doncaster
Ron - DoncasterMarch 2023
.... fully explained our equity release in language we could understand. There was no pressure to take out anything we did not need. I have no hesitation in recommending David....
John - Sheffield
John - SheffieldMarch 2022
Previous
Next

we can help support you…

  • Application forms & paperwork
  • Arranging Presales if required
  • Support and create build costs schedules and cashflow
  • Support on stage payments
  • Support on sales & marketing
  • Arrange Exit finance
CALL NOW 0800 246 5698
Book FREE 30 Minute Call
development finance options
10% property finance boost

+10% Presales Boost

Boost your “Day 1 cash”  by 10% of the GDV ! 

If you are a builder, then you know ‘cash is king’  there have been many good sites lost due to cashflow issues.  So just imagine how an extra 10% of the sites GDV in cash on day 1  could help you drive the site forward at breakneck speed !

You can still sell the houses at FULL VALUE  yourself and retain the full profit ( and just pay the presales agent a small commission) , or  if they just cant be sold, rest assured knowing that every house on the site has been sold off plan. 

Let us help you make your next project a success. 

get ready for blast off …

property development finance boost
CALL NOW 0800 246 5698
Book FREE 30 Minute Call

100% Development Finance

Are you seeking land purchase cost + 100% of build cost? Want to know development finance rates?

Property development finance is an essential tool for developers looking to fund their projects in the UK. Whether you are a seasoned property professional or a first-time developer, securing finance is a critical aspect of the development process. One way to help manage cashflow during a development project is through pre-sales and exit finance.

 
Pre-sales finance is a type of funding that is secured against pre-sales contracts. This type of financing is useful if you need to raise capital before your development is complete. By securing pre-sales contracts, you can demonstrate to lenders that there is demand for your development, which can increase the likelihood of securing finance. This can be especially useful if you are working on a larger project, as securing a significant amount of pre-sales contracts can help to reduce the amount of finance required.
 
Exit finance, on the other hand, is a type of funding that is secured against the future sale or refinancing of a completed development. This type of financing can be used to bridge the gap between the completion of a development and the sale or refinancing of the property. Exit finance can help to manage cashflow during the final stages of a development, allowing you to move on to your next project without being tied up in the sale of your completed development.
 
Both pre-sales and exit finance can be crucial tools for developers looking to manage cashflow during a development project. By securing pre-sales contracts or exit finance, you can help to reduce the amount of finance required and manage cashflow during the development process. This can be especially useful for developers who are working on larger projects, as it can help to reduce the amount of finance required and minimise the amount of time that the development project takes.
 
In conclusion, property development finance is an essential tool for developers looking to fund their projects in the UK. Pre-sales and exit finance can be crucial tools for managing cashflow during the development process, helping to reduce the amount of finance required and minimise the amount of time that the development project takes. If you are a developer looking to finance your next project, consider pre-sales and exit finance options to help manage your cashflow and ensure the success of your development.
 
 

HOUSE BUILDERS DEVELOPMENT FINANCE

  • 100% OF BUILD COSTS
  • RETAINED INTEREST & CHARGES
  • 65%ltv  OF LAND COST
  • 65%ltv OVERALL GDV
  • 100% PROFIT RETAINED BY  YOU THE BUILDER
Development Finance quote

Std Development finance Info continues below

JOINT VENTURE 100% FUNDED

  • FULL 100% FUNDING
  • 100% OF BUILD COSTS
  • 100% OF LAND COST & STAMP DUTY & FEE’S
  • 70% OVERALL GDV
  • 50/50 PROFIT SHARE
Joint Venture Info

100% Joint Venture Finance - Click below ..

Why work with us?
  • We’re construction finance experts
  • We have access to specialist lenders who understand the construction industry
  • We can secure funding for just about any purpose
  • We can get loans approved in 48 hours
  • We only charge a fee if we secure the funding you need

Give us a call for a no-obligation chat about your business requirements and what options are out there for you.

As specialist brokers, we can put you in touch with lenders who will truly understand the needs of your construction business.

Call Now  0800 246 5698   / or Advisor direct on 07779819891

100% JV property finance

100% Joint Venture Property Finance

March 19, 2023

Joint Venture Property Finance Joint Venture property finance can be an ideal solution for small house builders to fund their projects. Whether you’re a property investor with limited time or landowner searching for a partner to get your venture off the ground, joint venture property financing could be just what the doctor ordered. Before investing, make sure you understand what you’re getting yourself into. Here are some questions to ask yourself before determining if this investment is suitable for you:

Read More »
house builder exit finance

House Builder Turned Down For Development Finance?

February 16, 2023

Turned Down For property Development Finance? If you’re a UK house builder and have been declined for property development finance, don’t despair. A broker can assist in finding the right lender and completing any necessary specialist documentation. Despite an uptick in investment, small and medium-sized developers are still finding it difficult to meet rising demand for new homes due to a lack of financing. how smaller developers often get overlooked In many cities, small developers often go unnoticed when applying

Read More »
property finance new builds

building finance for UK house builders

February 14, 2023

Building Finance For UK House Builders If you are a UK house builder in need of financing for your new development, there are numerous options available to you. This article will focus on development finance, which is an adaptable option that can be used for buying land and covering construction costs. As part of the Government’s Leveling Up Home Building initiative, the Homes and Communities Agency has created a £3 billion fund for small home builders, custom builders and developers

Read More »
Uk house builder new houses

exit finance 75% LTV for UK house builders at low rates

November 28, 2022

exit funding We similarly handle partner company to help people once they have really established their own self establish homes, to exit and return into standard mortgage. – With one single expense check throughout 42 mortgage loan provider, banks and building societies, all in one single go! We have access to expert tools and systems, that enable us to take a look at expense throughout various banks and mortgage companies. Understanding simply just how much you can acquire towards that

Read More »
Uk house builder new houses

5 action guide to How development finance works

October 21, 2022

Task Financing and Development Loans for Your Next Building Site By getting secured development finance assistance, you can guarantee the start date for your next domestic or commercial house advancement or structure task. What is development finance!.?. By speaking with from a development finance lender, you can get additional details and actions to all of your concerns about moneying construct expenses. These building job loans are frequently secured for substantial, durable building. When you are accepted for getting a development

Read More »
construction finance finder service

Benefits of Development FinanceDevelopment finance can be ….

October 21, 2022

Benefits of Development FinanceDevelopment finance can be paid back reasonably rapidly, keeping standard lending expenses to straight-out minimums. As quickly as once again can affect the general expenses of the center in an useful technique, interest is merely charged on the funds presented which. No particular restrictions on simply just how much can be gotten. Development finance can be repaid relatively rapidly, keeping standard lending expenses to straight-out minimums. When once again can affect the total expenses of the center

Read More »

4 methods a Development Finance Broker can assist you – part…

November 30, 2020

4 methods a Development Finance Broker can assist you – part 2 If you are a home designer in the UK, utilizing a skilled bridging loan broker can assist make sure the success of your jobs. Your broker can organize the required financing for funding each building job. By working with an expert bridging finance broker, you can benefit from the perfect techniques of getting financing with the finest residential or commercial property advancement loans. Phase payments throughout a residential

Read More »
Uk house builder

18 things you need to know about Bridging Loans part 6

November 19, 2020

bridging loans explained – part 6 of 6 Bridging loans and development finance loans for builders,  can also allow you to buy land or develop a commercial property while you wait for another type of funding. Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 16) Example of Bridging Loan Use Bridging loans Bridging finance can be of great help to buyers of different types of properties. For example, you may

Read More »

bridging loan or development finance?

October 30, 2020

Swing loan or Development finance – Which is finest? When it frets moneying a home or building and building and construction task, it can be challenging to comprehend which funding center will be the most ideal. This brief post goes through the differences in between the most regularly made use of funding choices for service or residential or commercial property house enhancements, swing loan and development finance. We’ll think about jobs throughout England and Wales, nonetheless are particularly thinking about

Read More »
Property development finance

4 ways a Development Finance Broker can help you – part 2

October 16, 2020

development finance loans explained  Development finance loans for builders,  how they work?  what the process is, and how a development finance broker can help you 3. Help With Stage Payments If you are a property developer in the UK, using an experienced bridging loan broker can help ensure the success of your projects. Your broker can arrange the necessary funding for financing each building project. Securing the most reliable and effective financing for purchasing and developing properties can be complex

Read More »
loans for helping house building uk finance

Advantages of Development Finance

October 13, 2020

The biggest benefit of development finance is the way in which it allows borrowers to access much larger sums of money. In fact, it is the most extensive borrowing facility currently available on the UK market. Initially, funds are provided to get the project underway. As the project continues, grows and edges closer to reaching its goals, more money is released for the developer along the way. The total sum of money lent can be up to 100% of the

Read More »

4 methods a Development Finance Broker can assist youIf you…

October 3, 2020

4 methods a Development Finance Broker can assist you If you are a home designer in the UK, utilizing a skilled bridging loan broker can assist guarantee the success of your jobs. Your broker can set up the needed financing for funding each building job. By working with an expert bridging finance broker, you can benefit from the perfect techniques of obtaining financing with the finest residential or commercial property advancement loans. A specialist development finance broker will set up

Read More »

100% development loans

September 24, 2020

100 percent Development Loans 100% development finance loans are aimed at UK house builders, who having purchased the land then need to fund the build costs of the development construction site. Lenders will typically use the Final / end development value of the construction site and lend roughly 65% of the end value, towards the build costs.  They use the initial starting value of the land purchased as abase starting point  and then lend against the value of the site

Read More »

18 things to understand about Bridging Loans part 4 Interest…

September 22, 2020

18 things to understand about Bridging Loans part 4 Interest rates on bridging loans are generally greater than on business or domestic home loans. If you acquire bridge funding for the quantity of ₤ 100,000, your month-to-month interest rate at 0.37 percent will equate to ₤ 370. If you ought to get a bridging loan with an interest rate equating to 1.50 percent, your regular monthly interest rate will be ₤ 1,500. If you are a residential or commercial property

Read More »
Uk house builder

18 + things to know about Bridging part 5

September 12, 2020

bridging loans explained – part 4 of 6 Bridging loans and development finance loans for builders,  can also allow you to buy land or develop a commercial property while you wait for another type of funding. Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 13) Can I Get a Bridging Loan With Bad Credit? Bridging loans If you have bad credit, this does not usually interfere with getting approved for

Read More »

another 6 things to understand about Bridging Loans part 3

September 1, 2020

bridging loan for home advancement- discussed – part 3 of 6 , as they are in some cases understood, can likewise enable you to purchase land or establish a business residential or commercial property while you wait for another type of financing. , you can discover out whether or not you are a great prospect for bridging finance approval. Your broker can examine your existing monetary status and guide you in selecting a lending institution who is most likely to

Read More »
Uk house builder

18 things to know about Bridging Loans part 4

August 8, 2020

bridging loans explained – part 4 of 6 Bridging loans and development finance loans for builders,  can also allow you to buy land or develop a commercial property while you wait for another type of funding. Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 10) What Interest Rates Would I Be Charged? Bridging loans Interest rates on bridging loans are typically higher than on residential or commercial mortgages. This is

Read More »
house building uk finance

bridging loan or development finance?

August 1, 2020

Bridging loans or Development finance – Which is best? When it concerns funding a home or construction project, it can be hard to know which finance facility will be the most ideal. This article goes through the differences between the most commonly used finance choices for residential or commercial property advancements, bridging loans and development finance. We provide property development loans to skilled individuals and house builders with understanding of the marketplace. We’ll think about projects throughout England and Wales,

Read More »

Bridging loan instant online Calculator

July 30, 2020

Calculate How much Bridging finance can you get? Our Bridging Loan calculator  enables you to quickly see, what sort of level of bridge loan you might get for your housing build / property extension.  This calculator is primarily aimed at the UK finance lending market.  This calculator is for bridging loans that are secured against residential property, such as houses and flats. Residential property offered as security can be owner occupied, second/holiday homes, buy to lets and other investment property. It

Read More »
construction finance finder

Benefits of Development FinanceDevelopment finance can be p…

July 23, 2020

Benefits of Development FinanceDevelopment finance can be paid back fairly rapidly, keeping general loaning expenses to outright minimums. Interest is just charged on the funds launched which once again can affect the total expenses of the center in a favorable method. No particular restrictions on how much can be obtained. Funds are supplied to get the job underway. Development finance can be paid back reasonably rapidly, keeping general loaning expenses to outright minimums. Interest is just charged on the funds

Read More »
Uk house builder

another 6 things to know about Bridging Loans part 3

July 18, 2020

bridging loan for property development- explained – part 3 of 6 A key use of finance is to use a bridging loan for property development  Bridging loans or development finance loans for builders, as they are sometimes known, can also allow you to buy land or develop a commercial property while you wait for another type of funding. Property Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 7) Will I

Read More »
Uk house builder

next 6 things to know about Bridging Loans part 2

June 26, 2020

bridging loans explained – part 2 of 6 As short-term financing options, bridging loans can repair or stabilise broken property chains. This can make it possible for you to purchase a new home before your current home sells. It can also allow you to buy land or develop a commercial property while you wait for another type of funding. Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 4) How Does

Read More »
Uk house builder

18 things you need to know about Bridging Loans part 1

June 13, 2020

bridging loans explained – part 1 of 3 As short-term financing options, bridging loans can repair or stabilise broken property chains. This can make it possible for you to purchase a new home before your current home sells. It can also allow you to buy land or develop a commercial property while you wait for another type of funding. Bridging loans help many people finance property sales transactions that might otherwise be impossible for them to complete. 1) What Are

Read More »
home extension loan

things to know about bridging finance

June 1, 2020

Bridging finance for homeowners If you are considering using a Bridging Finance personal loan, it is always best to do some research before making a decision. It is best to get a personal loan from a reputable lender and make sure the interest rate you are getting is in line with your credit history. There are many lenders offering these loans, so finding the right one can be a daunting task. what is a bridging loan ? Bridging finance is

Read More »
Uk house builder

5 step guide to How development finance works

May 27, 2020

Project Financing and Development Loans for Your Next Building Site By obtaining secured development finance support, you can ensure the starting date for your next property development or building project. With this form of short-term financing, you can begin the first steps toward completing a property conversion. If you have plans for the construction of a large contemporary  apartment complex, development finance can ensure funding. Perhaps you are an experienced builder or a landowner with designs for constructing a new

Read More »

What this site is about supporting

https://100percent-propertydevelopmentfinance.com/

100 residential development finance
borrowing for property development
bridging finance for developers
development property finance
land development lenders
property development finance loans
property development loan interest rates
residential development finance lenders
residential land development loans
business loan for property development
development finance lender
development finance property
development finance rates
development finance uk
finance for property development uk
funding a property development
mortgage for property development
refurbishment finance
residential development finance
100 development funding uk
100 funding for property development
100 property development finance
building development finance
building development loan
development finance bridging loans
development finance brokers uk

0.53% apr

Minimum annual Interest rate
(typical rate 1% pcm)

70%

LTV overall against GDV

3 – 24 Months

24 months Max term available

Clients
Cases
£ 10000000
funded
Recent Posts
uk builder construction-labor

Get Your Free quote

One simple enquiry and we check all available lenders for you!

Send Request
Your Build - We Fund
We have lenders that will fund property development finance on;
  • Residential ( houses ) property development finance to 100% of the build costs from 1 house to 50 unit sites.
  • Experienced builders at record low rates
  • New house builders starting out – with smaller sites
  • Industrial / warehousing facilities
  • Office blocks / retail parks
  • Office to residential conversions

It’s EASY to get started

  • FREE Initial enquiry and obligation-free consultation
  • FREE Comparison of deals from specialist UK lenders

Lending In More detail
We have lenders that can  provide up to 60% of the  land purchase value and 100% OF THE DEVELOPMENT COSTS (INCLUDING FEES) and roll up the interest provided that the total Facility does not exceed 70% of the GDV estimated end value.

Higher L.T.V. if additional property /  security is available.

100% Property development finance

Property development finance -As an experienced developer you know that covering the build cost and managing the cashflow during the build is vital.  Our goal is to work with you for you to have a successful project – that way we hopefully win your repeat business ! 🙂

Development finance institutions  when lending property finance or bridging loans, will look at how experienced developer you are.  This will help them together with the GDV, gross development value help them look at the risk and determine the maximum loan and interest rates they wish to charge.

Also In working with the development finance lenders each month, we know who will and wont lend on certain projects, some lenders for example only want to do bridging loans, some only want to lend on refurbishment projects, whereas some only want to lend on new build property projects.  Nearly all will lend to the private sector as public sector has their own funding routes.

Compare development finance rates, on construction finance for builders

 

 

No Obligation Free Quote - Click Here

New Build development finance options?

Let us help you find the right development finance lender and get the best funding option for your property project.

We can even help with exit finance. – Exit finance is where you may have sold some of the units, but struggling to sell the final few properties, rather than pay the higher development funding option interest rates, we can bring in exit finance at much lower rates as the site has been completed there is less risk to the commercial mortgage lenders.

Compare development finance rates, on construction finance for builders

 

100% development finance available : £100k - £2m

(upto £10m funding available for experienced / previous clients with proven track record)

Secondly we can help fund your property development project with finance options from development finance lenders and private investors. Let us help you look at all your finance options including mezzanine finance.

Getting  development finance options for experienced developers and new developers, particularly on new build houses. With specialist lenders that will help the private sector builders get established.  Some Private investors will even work on a joint venture basis.

If you’ve got a building project that you want to get off the ground, we want to hear about it. 

Our team will take the time to understand your story and find a competitive solution that is tailored to your needs. Whether your development project is residential, a care home, student accommodation, office or mixed use, we will work with you to try to make it happen.

loans for helping house building uk finance
Ask a Question?

Read our Articles on Builder finance....

100 Joint venture development finance

We are here to make obtaining a Development Loan for your real estate development project easy – 

Whether its through arranging a commercial mortgage, funding via a private investor or specialist lender we are here to help ensure we can put in place any senior debt that you need covered.

We can with enough notice support a  property investor or construction firms with auction finance to purchase brown field sites and then work with them to look at the project costs and  provide a 100% funding of build costs via the development loan

Property development finance explained

Your next property development finance loan = approved

Property development finance explained – From enquiry to completion, we’re here to help you through the borrowing process. Over the years, we’ve refined and perfected our application process to provide you with a seamless and intuitive experience. ONE simple enquiry and we will check your project and offer you a lender that WILL offer  to fund 100% of the build costs.

With  a very hands-on approach to our residential development finance. Where possible  like to meet clients face-to-face, and to visit the development site to see its potential for ourselves. We study the plans, and research the local market.

100 Percent Property Development Finance loans are short-term funding loans, used to develop either an existing building, i.e. refurbishment, or a property conversion, or a new build. The property Development Loans are usually taken over a period of between 6-18 months. This really depends on the type of Development; with a light refurbishment it could be as little as 3 months, and with a larger scheme up to 18 months

New Builder ? Impaired credit ? Discharged Bankrupt?

New Builder ?  or previous Impaired credit history ?  perhaps even a bankruptcy in the past ? don’t worry we know the building trade isn’t always smooth sailing. We can arrange funding for all residential and commercial development projects even if you are a first time developer. Regardless of your experience level, credit history or development project, we can help.

If you have current or recent ccjs we can still look at getting you development finance. We can even get development finance for discharged bankrupts, just make sure you tell us all the bad credit information so we can source the development finance lender that will accept your credit history.

Discharged bankrupt – you can get development finance, we just have to declare everything upfront, and lets be honest you wont get 0.64% rates at the start, your rate swill be 1% + pcm  for the first few projects until you prove your track record.

 

First time developers with little or no experience

Property development finance explained - First Time Developers With Little or No Experience

For first time developers looking for their first property development loan, trying to figure out how they get 100 development finance – we as property development finance brokers, can help with looking at all your finance options.

Property Developers with little or no previous experience, we can still provide finance to get you up and running whilst most high street lenders will not entertain developers with no experience we have many other lenders who will look at the bigger picture.

As specialists in dealing and packaging your loan application to give you the very best chance of getting finance for your first project, we work with all types of developer and have had many years of experience providing Development finance

Experienced Property Developer, Development Loans.

Experienced Property Developer, Development Loans.

So what is an experienced Developer? Generally, you will have completed at least 4 to 5 projects and sold on for a profit. A builder or building contractor would not be considered a Property Developer, neither would someone who developed and kept the finished properties in a portfolio. The key is the selling.

Also, there are many skill sets that a Developer has that a Builder would not possess. As always, experience and dealing with the many pitfalls that come with Property development, selling on, keeping a tight control over costs and not overdeveloping (something some builders do proudly). It is great having the best spec and design but will it add profit?

 

Typically these might be larger senior debt loans, or involve mezzanine finance, but we can help you understand as a borrower the best options for you and your property development project.

100% Commercial Mortgages

As property development finance brokers , we can access Development loans, 100 development finance, bridging finance, mezzanine finance whether its from specialist lenders, private investors or the main commercial mortgage providers or development finance institutions. Are effectively all commercial mortgages, in that they are financing property that you as the developer do not intend to live in yourself.

Whether its a complete new build housing site, or a refurbishment of a commercial property, or conversion from office space to residential property.  we can help you plan out your build costs for your development project.

In summary guiding you through all the professional fees  from solicitors professional fees  to the lenders professional fees.  We can help make sure the loan amount is correct and advise on what the maximum loan would be for you as a borrower.

Margaret Curtis

Development Company

If you are looking for some awesome, knowledgeable people to work with, these are the guys I highly recommend. Their friendliness and result-driven approach are what I love about them.

Matthew Fox

Uk Builder

Down to earth, great advice and support. Really helped me get the project off the ground.

100% Property development finance loans for builders

Bridging finance for development is used to build a new building or convert an existing building. This can be residential houses, shops, offices or industrial buildings. It can be for investment purposes or owner occupied.

In short – You can be an experienced developer / builder or a first-time developer.  Whatever your status as a builder by profession who has purchased land and wants a loan to build houses that he will build and sell on. 

The maximum you can borrow to purchase the site is anywhere between 50-60% of the purchase price depending on the project. Your proposed site would need to have full planning in place or can be agreed subject to planning.

Key Features of typical Development Loans

  • Loans from £100,000 upwards
  • No tie-ins. In most instances you can repay the loan without incurring any early repayment charges
  • No experience is required provided a building contractors contract has been provided
  • Funds are available in stage payments and interest charged only on the money drawn
  • Can use other properties as collateral
  • You are not liable to borrow the full agreed amount should your build go below budget/plan
  • With property development finance the valuations tend to be higher than standard valuations and take longer to perform.

In summary you can  borrow up to a 100% of the build cost provided that it is within 60% – 70% of Gross Development value (GDV) depending on the lender and experience (set on a case by case basis). Maximum term you can borrow for development finance is between 12- 36 months. Exit is usually sale of properties or refinancing.

.

Development finance The Skys the limit !
house building uk finance

Advantages of 100% property development finance loans

and how UK householders can get the finance they need

Main Development Finance Costs

What Costs to Expect on a Development Finance Loan?
This is dependent on the experience of the property developer. Rates can be as low as 4% pa and they can go as high as 20% pa for say an ex-bankrupt, so the range can be anywhere in between. Also, most lenders charge an arrangement fee of between 1-2% of the loan amount. Some Lenders also charge an exit fee, although not all. Usually a percentage of the GDV (gross development value), and around 1% to 1.25% depending on the Development Loan period, i.e. 1% of gross development value for a 12-month loan 1.25 % of GDV for an 18-month loan.

What Are the Main Development Finance Costs?

Fees, charges and general borrowing costs vary significantly from one lender to the next. The following will apply in most instances as the primary costs of development finance:

Lenders fee – More commonly referred to as an arrangement fee, the facility fee is calculated as a percentage of the total cost of the loan (gross or net).

Interest rate – Interest on a development finance loan can be charged on an annual or monthly basis. Annual interest rates of 7% are not uncommon, as are monthly interest rates of 1%. Longer-term facilities attach lower rates of interest, though cost more than those that are repaid quicker.

Completion fee – Sometimes called a completion fee, the exit fee is usually calculated as a percentage of the total cost of the loan (gross or net). Some lenders charge a percentage of the total value of the completed project – not the sum borrowed.

Broker fee – Most brokers charge typically 1%  to 1.75%  of the total value of the loan. If a fee is charged, you will be informed of this in our initial quotation.

These are just some of the primary costs to take into account when considering development finance. Working with an independent broker will help ensure you gain access to the best possible deal to suit both your requirements and your budget.

Other Development Finance Costs to Take Into Account

Additional development finance costs to take into account (which may or may not be applicable) include the following:

Valuation fees – It will usually be necessary for an initial valuation to be carried out by a neutral third party, in order to assess the open market value of the security. This will also typically include a projected valuation of the completed project.

Application fees – we does not charge application fees. Some lenders and brokers impose fees simply for submitting an initial application, or seeking advice on development finance.

Legal fees – If it becomes necessary to hire a solicitor or seek qualified legal advice, the applicant will be responsible for meeting all such costs accordingly.

Administration fees – This is a somewhat vague term, which can apply to almost any additional cost imposed by the lender. Some brokers also charge administration fees 

Monitoring fees – Development finance lenders will naturally need to monitor the progress of the project, in order to ensure it is reaching its predetermined goals. This is to make sure their investment is sound, and the funds allocated are being used as agreed. All monitoring fees are picked up by the borrower.

Draw down fees – Each time a new instalment of funds is transferred to the borrower, an additional fee known as a draw down fee may apply. This could be a set fee, or charged in accordance with the size of the instalment. 

Telegraphic Transfer fee (TT Fee) – This is a cost levied by the banks handling the money transfers, which in the case of development finance can be comparatively large. Nevertheless, TT fees are generally quite small and charged at a fixed rate.

.

Discharged Bankrupt? development finance deals

Uk Development finance calculator

click here to go to the UK house builders development finance calculator for an instant guide as to how much you can borrow .

Don't delay - apply today !

Get in Touch
Uk house builder new houses