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Why Use No Personal Guarantee Development Finance?

No Personal Guarantee (PG) development loans are effectively a form of unsecured funding for major property development and construction projects. An attractive option for developers unable or unwilling to use their own personal assets as security, No Personal Guarantee development finance can be a flexible and affordable short-term facility.

But as No Personal Guarantee development finance can be more expensive than traditional development finance, experienced broker support is essential. Negotiating on your behalf, your broker will help present your case as convincingly as possible to ensure you get an unbeatable deal.

No Personal Guarantee Development Finance at UKPF

At UK Property Finance, we help new and established developers from all backgrounds secure competitive No Personal Guarantee development finance deals at up to 90% Loan to Costs and 70% GDV.

Whatever your reasons for seeking unsecured funding for a property development project, we can pair you with the perfect lender for your requirements. Call anytime for an obligation-free consultation, or email the team at UK Property Finance and we will get back to you as soon as possible.

Independent Advice and Representation

Operating as a fully independent broker, we are able to provide the honest and impartial advice you need to make the right decision. We use our extensive industry knowledge and experience to streamline and simplify all aspects of the application process for the benefit of our clients.

Working with UK Property Finance, your case manager will help you prepare all of the documentation and paperwork needed to support your application. Every NPG development finance product we arrange is bespoke and tailored to meet the exact requirements and budgets of our clients.

We will also discuss any alternative funding options that may be available for your project, should a No Personal Guarantee development loan not be suitable for your requirements.

Types of Development Finance

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:

ground up build development finance

Ground up builds

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.

property conversion or restoration finance

Large scale restoration and property conversions

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.

property refurbishment finance

Property refurbishment

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.

bridging loan property development

Bridging loan for property development

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.

How is Development Finance Repaid?

Development finance loans are typically paid in one of the following three ways:

Paid in full

the total loan amount is paid in full, using the profits, when the project is complete, and the properties have been sold.

refinance with long term loan

Refinancing using a long term loan

this usually happens when the developer wants to keep the development for either personal use or for rental purposes.

development exit finance

Refinancing using a Development Exit Bridging Finance

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.

Frequently Asked Questions

Where a personal guarantee is issued, a borrower assumes the legal obligation to ensure outstanding debts are repaid. This means that if the business is unable to repay the debt as promised, responsibility falls with the individual and their own personal assets.

No - loans issued on the basis of a personal guarantee are considered unsecured loans. This is because the loan is not issued on the basis of one or more specific assets of value.

As with an unsecured loan, defaulting on a personal guarantee loan may result in debt collection measures being enforced against the individual who provided the guarantee. At which point, their assets may be repossessed and sold to cover the costs of the debt.

Lending policies differ significantly from one provider to the next, including maximum loan amounts. Typically, a No Personal Guarantee development loan will be issued to a maximum of 90% Loan to Costs and 70% GDV.

This can make No Personal Guarantee development finance a useful facility for investors and developers looking to minimise their own capital investment, while not having to worry about that prospect of their own personal assets being repossessed.

Development Finance Products

Contact Us

Contact Details

pin Office Block 2, Nursery Court, Kibworth Business Park, Harborough Road, Leicester, LE8 0EX

phoneTelephone: 0116 464 5514

locationWeb: www.developmentfinance.com

Opening Hours

Mon - Fri: 9am - 9pm

Sat: 10am - 5pm

Sun: 11am - 5pm


Job Vacancies

For vacancies please email us on  jobs@developmentfinance.com