The development finance process
The application process for development finance runs as follows:
|1||Before talking to anybody, you will need to work out a rough idea of costs, end value, profit margin, how long the project will take and viability.|
|2||You will then discuss your needs with either a lender or broker who will talk things through and assess the project.|
|3||Assuming the scheme is viable, you will then receive a quote in writing detailing the interest rate, fees and headline borrowing terms, along with a list of documents needed to submit a full application.|
|4||The application will be completed and submitted to the lender (if submitted through us, they will be submitted alongside a comprehensive report on the project).|
|5||If the lender is happy with the initial application, they will want to meet you and visit the site. This helps to understand the project and build a relationship between you and your dedicated lending manager. We will work with you to arrange the site visit and will often attend to help you to answer any questions.|
|6||After the site visit has been completed, your lending manager will usually take your application to the credit committee. These are the underwriters who sign off the application as acceptable to the lender. Once approved, the lender will issue the formal offer, subject to valuation and legal work.|
|7||A surveyor is instructed to compile a valuation report on the project. It will be comprehensive, covering the current value, anticipated build costs, anticipated gross development value and expected demand.|
|8||Your solicitor is instructed to carry out the legal work and satisfy all conditions. They will run through the terms of the agreement and ensure you fully understand the loan. Once satisfied, you will sign the formal offer and return it to the lender. It is important that your solicitor is experienced in dealing with development finance as inexperience here can slow the process down significantly.|
|9||Once all of this is done, the funds can be released, and the loan completed. Note that only the first stage of funds is released to your solicitor.|
Development finance criteria
As whole of market brokers, we work with lenders across the market to secure the most suitable terms for you. Most development finance lenders assess applications on a case by case basis, the below examples are intended only as a guide.
We can fund property developments from £50,000, with no maximum loan size. For loans below £50,000, we may still be able to lend, however, a property refurbishment finance product may be more appropriate.
The term of your development finance can run from 1 to 36 months. Most applications tend to be arranged over a term of 12-24 months.
Any security considered, with or without planning permission.
We can lend to the following borrowers:
- Private borrowers
- Pension schemes
- Limited companies
- Offshore companies
Applicants must be aged 18 or above. SPV Ltd. companies can borrow from start up and there is no requirement for previous trading history.
We can lend in the following places:
- Northern Ireland
We are often able to offer special, low-rate finance for applications in large cities including London, Birmingham, Manchester, Liverpool and others.
Funding can be offered regardless of credit history, as long as you are not currently bankrupt. If your credit history is particularly bad, or if you have a number of failed developments, lending may be restricted and interest rates higher.
We can offer funds for any type of property development, including ground up development, part build schemes and conversions.
Funding is available for sites with or without planning, if the planned works during the term of the loan are in keeping with local planning and building regulation laws.
Any exit strategy considered. The planned exit route must be realistic and will be sense checked prior to being accepted. The most common exit strategies are either the sale or refinance of the scheme once completed.
What if my details don’t meet the criteria above?
We always aim to help as much as possible, so if your circumstances don’t quite meet the criteria above, get in touch using the form at the top of the page and we’ll talk it through with you.