Development Finance
Development finance for residential and commercial projects, from refurbishments through to large scale multi unit developments, is available via the companies on our panel. Typically up to 90% Loan to Cost, 75% of end GDV via Senior Debt is provided. The profit margin required after all costs, including finance costs, is around 25%.
In Summary:
- Development loans available from £500K to £100m.
- Maximum Loan to Cost: circa 90%. Typically up to 60% of the acquisition cost, and up to 100% of the build costs can be provided.
- Maximum Loan to GDV: typically up to circa 75%.
- First Charge security of the Development site is required.
- Interest rates typically 6% plus BofE base rate pa as a guide, dependent on the project, the experience of the Developer and the potential profit margins of the project.
- Projects financed can be Residential, Student Accommodation, Permitted Developments, Refurbishments, Mixed Use Schemes, Hotels, Offices.
- Full planning permission is required for the proposed scheme.
- Developers should have relevant prior experience in similar projects, although new Developers will be considered for small projects.
- Personal Guarantees may be required in addition to the First Charge security required.
- To allow detailed Due Diligence once an application has been accepted, Developers are expected to provide fully costed project plans, including detailed construction costings, sales and marketing plans, comparables to justify the envisaged end GDV, a background and history of past development projects undertaken, and an indication of the capital they are putting into the project.