Residential & Mixed-Use Development Finance
What Is Residential Development Finance?
Residential development finance is a type of funding used to finance the building or conversion of a property into residential units. It can be used to fund schemes from one unit to large projects of thousands of units.
Funding costs can vary widely between development finance lenders, meaning the cost of choosing the wrong lender can heavily affect the profitability of a scheme.
We offer funding from lenders across the entire development finance market and work on your behalf to secure the best possible terms for your project.
Read on below to find out more or fill in the form to talk to an expert.
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The Latest Residential Development Finance Products
View some of the latest residential development finance offers from major lenders.
Criteria
Below are the main criteria points to consider when taking out residential development finance.
| 1 | Borrow up to 75% Loan to GDV (gross development value) |
| 2 | Additional security considered in lieu of deposit |
| 3 | Funding from £50,000 with no maximum loan size |
| 4 | Rates from 4.5% per annum |
| 5 | Funding available for experienced or inexperienced investors |
| 6 | Funding available across the UK |
| 7 | Regulated and unregulated funding available |
| 8 | Terms from 1 month to 36 months |
| 9 | Interest can be rolled into the loan with no monthly payments |
| 10 | Adverse credit considered |
Mixed-Use Properties
Mixed use properties are made up of both residential and commercial units, often heavily favouring any residential element. For example, a block of 20 apartments, with a retail unit on the ground floor.
Funding mixed use schemes is very similar to a purely residential scheme, but demand for the commercial element will be closely scrutinised. Some lenders will even insist on pre-let or pre-sale agreements on the commercial units.
How Much Can I Borrow?
We offer funding from £50,000, with no maximum loan. Development funding applications are considered on a case by case basis, based on the strength of the application, with the interest usually rolled into the loan.
As there are usually no affordability restrictions due to the rolled-up interest, the maximum loan is usually decided by the lender’s maximum loan to GDV.
How Much Will It Cost?
We offer funding for residential property developments starting from 4.5% per annum. Generally, interest rates will be lower for larger, lower risk loans.
Although the size of project can’t be controlled, interest rates can often be reduced by requesting a lower loan to GDV.
We scour the whole development finance market to secure the lowest rates for every application that we work on. As loans are often priced individually, it can be hard to predict the rate for your project. We can usually offer full, lender backed residential development finance terms within two hours of your initial enquiry.
How Quickly Can I Complete?
We can usually complete residential development finance applications in around six weeks, although this can be reduced for urgent applications.
It is advisable to apply for your funding as early as possible to allow as much time for completion as possible. Some lenders tend to work much faster than others. By working to a tighter deadline, you may find yourself unable to work with certain lenders, due to the time it takes them to complete an application.
About The Author
This content was produced by our Commercial Lending Director, Gary Hemming. Gary has over 15 years’ experience in financial services and specialises in bridging loans, commercial mortgages, development finance and business loans. He is widely respected in his field and regularly provides expert commentary for specialist trade publications, specialist business press as well as local and national press.
Gary Hemming CeMAP CeFA CeRGI CSP -
Commercial Lending Director
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