Residential Development Finance 2018-02-02T22:29:36+00:00

Residential & Mixed-Use Development Finance

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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.

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The Latest Residential Development Finance Products

View some of the latest residential 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

Criteria

Below are the main criteria points to consider when taking out residential development finance.

1Borrow up to 75% Loan to GDV (gross development value)
2Additional security considered in lieu of deposit
3Funding from £50,000 with no maximum loan size
4Rates from 4.5% per annum
5Funding available for experienced or inexperienced investors
6Funding available across the UK
7Regulated and unregulated funding available
8Terms from 1 month to 36 months
9Interest can be rolled into the loan with no monthly payments
10Adverse 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.

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