Here at developmentfinance.com, we offer funding to kickstart the creation of fresh properties. No matter the scale or scope of your ground-up development, every project presents its own distinctive challenges.
We're by your side every step of the way, extending a development loan covering the land value, 100% of construction expenses, and up to 70% of the gross development value. Let's work together to breathe life into your vision.
At Developmentfinance.com or UK Property Finance, we're deeply rooted in the property world. We understand the ins and outs because we've been there ourselves. We grasp the challenges of delays and navigating regulations first-hand. And we certainly know the elation that comes with seeing your project thrive.
Our team comprises seasoned property developers, property banking experts, and RICS-qualified valuers. We stand shoulder-to-shoulder with you, offering guidance and technical know-how whenever you require it. With a fresh entrepreneurial outlook, we approach each project anew, crafting solutions tailored to your specific requirements and adjusting them as the journey unfolds.
Reach out to us, and our team of property and finance experts will have a chat with you. Tell us about your project's requirements, and we'll leverage our financial expertise and property acumen to craft a tailored solution, wherever possible.
Count on us for swift delivery of our offer of finance. With credit-backed terms, you can proceed with confidence and clarity. Once our streamlined verification process is complete, your drawdown date will be within reach. Focus on your expertise while we handle the financial aspects.
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.
Yes, you can! Property development finance is a specific type of loan designed to fund the purchase, construction, renovation, or conversion of property. Unlike regular mortgages, these loans are short-term and released in stages according to project milestones.
Deposits for property development finance typically range from 20% to 40%, depending on the lender, project complexity, and your experience. Some lenders may require additional cash reserves to cover unexpected costs.
No, you cannot get a traditional mortgage on land without planning permission. However, some lenders offer specialised bridging loans for land purchases, but these are short-term and have higher interest rates. Obtaining planning permission before securing financing is usually recommended.
The amount you can borrow depends on several factors, including:
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 similarly 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.
Permitted development funding emerges as a financial solution tailored to specific projects where prior planning permission is not needed.
No matter the scale or scope of your ground-up development, lets work together to breathe life into your vision.
Working with developers nationwide, we provide access to flexible funding enabling the inception and realisation of high-value student accommodation projects.
Build to Rent is a property development strategy crafted specifically to cater to the rental market, diverging from the traditional focus on long-term home ownership.