Development Finance

Loan amounts generally start at around £150,000 while the overall amount would depend on the gross development values. You would normally expect funding of between 70 – 75% of the property purchase price plus building costs.

In some cases, if you already own the land or have a proven track record of success as a developer, it may be possible to borrow against the final value of the property rather than the current value. In these cases loans for 100% of the development costs may be available.

Interests rates would vary depending on your requirements and your circumstances. In most cases, a lender will assess the property and the intended works and make an offer accordingly. For residential development finance rates will differ but a good guidline would be of Bank Base Rate +1.5% to 2.5%.

Development Finance packages are usually interest only and terms usually start at one year upwards depending on the nature of the project.

Before applying for Development Finance you would usually need to have already received full planning consent for your project, along with all relevant paperwork. Exceptions may be made if you have a proven track record as a developer.

If you have any further questions, please talk to one of our advisors on 0800 881 8834