Commercial Development Finance2018-06-15T11:51:57+00:00

Commercial Development Finance

Home » Development Finance » Types of Development Finance » Commercial Development Finance

DEVELOPMENT FINANCE MENU

What Is Commercial Development Finance?

Commercial property development finance is designed to allow developers or business owners to build a new commercial property. When looking to fund the build of a commercial property, finding the right lender can prove more difficult with most lenders favouring residential developments.

We work with lenders across the market that are keen to fund commercial and mixed-use schemes across the UK. We do the hard work for you, scouring the market to find the lowest possible rates, and in most instances do not charge broker fees.

As independent brokers, we aren’t tied to any 1 lender, meaning we are free to find the best terms for you. Our team of experienced advisers take the time to fully understand your project before talking to lenders and negotiating terms on your behalf.

Pick up the phone
Talk to an Expert
For free advice call
01922 620008

The Latest Commercial Development Finance Offers

View some of the latest commercial development finance offers from major lenders.

Product DF0001 - Apply Now
Interest Rate
4.5%
Arrangement Fee
2%
Max LTC
70%
Max LTGDV
60%
Min-Max Loan
£3,000,000 - £25,000,000
Max Term
30 Months
Experience Required
Yes
Notes
Exit Fee On Negotiation
Product DF0002 - Apply Now
Interest Rate
5.9%
Arrangement Fee
2%
Max LTC
80%
Max LTGDV
60%
Min-Max Loan
£2,500,000 - £100,000,000
Max Term
36 Months
Experience Required
Yes
Notes
No Exit Fee
Product DF0003 - Apply Now
Interest Rate
7%
Arrangement Fee
2%
Max LTC
90%
Max LTGDV
60%
Min-Max Loan
£500,000 - £20,000,000
Max Term
18 Months
Experience Required
Yes
Notes
Exit Fee 1% of GDV

How to Apply For Your Commercial Development Loan

Follow these steps to ensure a successful application:

1The first step before starting your application is calculating your costs, end value, profit margin and how long the project will take.
2Enquire online or call us on 01922 620008. We will talk through your potential application, taking down any relevant details.
3We will provide you with a full written agreement in principle. It will detail the interest rate, fees and headline borrowing terms, along with what documents are required to submit a full application.
4Once you have completed and returned the required documents, we will submit it to the lender along with a comprehensive report on the project.
5Once the lender has assessed the application, they will arrange to meet you on site. This gives them a chance to meet with you and to understand the project more fully.
6After 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.
7A surveyor completes a report covering the current value, anticipated build costs, anticipated gross development value and expected demand.
8Your solicitor is instructed to carry out the legal work and satisfy all conditions. 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.
9The process is now ready to complete and the funds can be released. You are now able to start drawing on your loan and begin the development works.

How Much Can I Borrow?

The maximum loan on property development finance is worked out using several figures.

  1. Firstly, the initial funding will be worked out on the loan to value (LTV) of the site.
  2. The lender will then consider the total borrowing in relation to the end value of the build, this is known as the loan to gross development value (LTGDV).
  3. Finally, the lender will agree to fund a certain amount of the build costs, this is known as loan to cost (LTC).

When looking at commercial development finance, we can usually fund 55/65% of the initial acquisition costs and up to 60/65% LTGDV. Some lenders will restrict loan to cost, however, there are lenders who are willing to offer up to 100% LTC.

Roll Up Your Monthly Repayments

When taking out commercial property development finance, you can roll your monthly interest payments into the loan. This means there are no monthly repayments to make during the loan, subject to fitting the LTGDV criteria for the lender.

First-Time Developers

We are able to offer finance to both experienced and first time developers. If you’re looking to develop for the first time, we would highly recommend working with experienced professionals.

Whatever your situation, we will use our contacts across the market to secure the lowest commercial property development finance rates for you.

What We Fund Against

Commercial Development loans can be secured for the following:-

  • Construction of industrial buildings
  • Land with planning for commercial property
  • Construction of office blocks
  • Mixed residential and commercial schemes
  • Refurbishment or conversion of shops
  • Office to residential conversions
  • Refurbishment Finance
  • Pub to residential conversion
  • Builds on farmland

The above list is not exhaustive, if your enquiry relates to a different scenario, get in touch and we will let you know exactly what we can offer.

Working With ABC Finance Ltd

At ABC Finance Ltd. we work with commercial development finance lenders across the market. Our experience with commercial developments means we can secure the best terms for our clients quickly. By working with us, you can access the whole market through one enquiry.

From the first conversation, right through to completion, we manage the whole process for you. This means you can relax while we negotiate with multiple lenders on your behalf to secure the best terms.

Enquire online now or call us on 01922 620008 to get a fast personalised quote.

Want to Know More…?

Use the panels below to read more on Development Finance.

This website uses cookies to improve your user experience. Select 'Agree' to continue to the ABC Finance Ltd website or view our terms of use or privacy policy. Agree
Close
ENQUIRE NOW - CLICK HERE