We have a wide range of lenders for property developers whether it be a small scale refurbishment up to major residential developments.
Finance is arranged over the short term to allow you to do the build and comfortably exit the loan.
The maximum loan is agreed at the beginning and is based on overall costs, projected value, location and experience.
POINTS TO CONSIDER
– How much do you have as a contribution and for contingency
– Is interest included or excluded from the percentage the lender provides
– How is interest calculated and do we have to pay it monthly
– Is the term of the loan offered sufficient for the build and marketing period
– Will the lender need a Monitoring Surveyor
– Are Collateral warranties needed by the lender
– Ensure your professional team has the right qualifications for the lender
– Can the Development Lender also provide a long term loan as the exit strategy
– Usually 70% of initial purchase/value and 100% of build costs
– Between 65% – 75% of GDV (Gross Development Value)
– Rates variable or fixed
– Fees based on debt or GDV
– Term up to 2 years but typically 12 – 18 months
– Rates and amount dependent on experience of doing similar projects and size of loan