Are you a first-time developer seeking affordable finance to fund your first major project? Would you prefer a bespoke solution to suit your exact requirements and budgets, instead of a generic 'off-the-shelf' High Street loan?
At UK Property Finance, we have the specialist knowledge, experience and network needed to support new and established developers from all backgrounds. Our team will help you determine the ideal funding solution for your project, before negotiating an unbeatable deal from an extensive panel of approved lenders.
Qualifying for affordable development finance as a first-time developer can be challenging. This is due to the fact that most lenders expect to see evidence of many years of relevant experience before issuing loans to property developers.
This is why it is important to seek the support and representation of an independent broker at the earliest stage. All aspects of your development finance application need to present your case as convincingly as possible.
At UK Property Finance, our extensive network of lenders includes a number of top-rated development finance specialists who take pride in supporting newcomers to the sector. Irrespective of your experience and track record to date, we can help you find an unbeatable deal to get your project off the ground.
The key to a successful development finance application lies in careful planning and preparation. Ensuring you have all the documents, projections and paperwork needed to support your application is essential.
Our experienced team of development finance brokers will ensure you know what is expected in terms of evidence required to support your application. We will also talk you through the various questions you can expect to be asked, prior to your loan application being approved.
When looking for development finance it is important to identify the type of project being planned by the developer in order to access the correct funding product. Types of works can include:
New builds nearly always require development finance loans. Once the project is completed, developers may use development exit finance as a more cost effective solution, but this cannot be done before the project is watertight.
for this type of project refurbishment finance is typically the correct type of loan to use, however if the project is larger than the norm, development finance may be a better alternative.
a refurbishment loan, which is a type of bridging finance, is generally used for property renovations. It can be used for various improvements including, installing a new roof, general structural changes, building an extension, refurbishment, and decoration.
Property investors or developers may want to buy property which needs development or completion work still doing and are unable to get funding from their bank. This is a typical scenario when a bridging loan is a suitable alternative.
Development finance loans are typically paid in one of the following three ways:
the total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.
this usually happens when the developer wants to keep the development for either personal use or for rental purposes.
this type of short term loan is often used to fund a new development project before the current project is sold. It can also be used to give developers a bit of breathing space to complete minor works and find buyers.
Lenders base their decisions on the level of risk any given loan or financial product carries.
Experienced property developers with an established track record of successful project completions are considered low-risk borrowers. Elsewhere, developers with little to no experience constitute higher-risk borrowers from the lender's perspective.
Eligibility for development finance will be assessed on the basis of multiple factors. Considered collectively, these factors will give the lender an indication of the risk level of the transaction. As a newcomer to development finance, your job is to present yourself and your project as low-risk.
Development finance differs from conventional funding, in that the capital is released gradually in a series of stages. Your lender will carefully monitor the progress of your project, releasing subsequent instalments when satisfied that the project is progressing as planned.
Consequently, one of the main risks associated with development finance is the potential for loan instalments to be delayed or denied. If your project runs into difficulties at any time, your lender may refuse to issue the next instalment until they are resolved.
Qualifying for a competitive deal as a first-time developer is perfectly possible, with the right support and representation.
At UK Property Finance, we can help you get your project presented in a positive and convincing light, based on the following projections and supporting documentation:
Even if you have been turned down for development finance elsewhere, we can help you find an affordable deal from an established lender you can count on.
Call UK Property Finance anytime to get your application under way, or email our team with details of your requirements and we will get back to you as soon as possible.
Having access to funds for property development purposes allows borrowers to take on bigger projects than they would usually be in a position to finance.
The purpose of the facility is to provide the developer with additional time to sell their completed development, while keeping costs as low as possible.
Qualifying for finance as a first-time developer can be challenging. This is why it is advised to seek support of an independent broker at the earliest stage.
Our products are suitable for large and small hotel development projects of all types, from repurposing existing properties to building new hotels from scratch.
Joint venture development finance works in a similar way to conventional development finance. However, no deposit needs to be paid and rates are typically higher.
Mezzanine finance, aka mezzanine funding, effectively enables property developers to 'top up' their first-charge development finance facility to access extra funding.
No Personal Guarantee (PG) development loans are effectively a form of unsecured funding for major property development and construction projects.
Whether your goal is to maximise the value of a property you plan to sell or to boost rental income long-term, a refurbishment finance loan could be just the thing.
Senior debt development finance is the primary source of funds in the form of a first-charge loan. It is considered a lower-risk facility on the part of the lender.
Stretched development finance can be the perfect choice for investors and developers looking to stretch their own equity as far as possible with borrowing for up to 90%.
'Light refurbishment' is used for cosmetic upgrades and minor improvements. 'Heavy refurbishment' is used to raise funds for structural improvements.
Commercial property development finance can be used to fund, build or develop a property or be used to expand your current business property or space.