We arrange development finance from £26k to £250m, funding developers for land and property acquisition, construction, conversion and light to heavy refurbishment projects throughout the UK.
We can achieve up to 100% LTV (with additional security) and 100% of build costs.
Contact us first for a no obligation quote.
Our finance specialists help package up development proposals so they achieve the best rates available from our lending panel. Arrange a call with one of our experts today!
|Loan to gross development value (LTGDV)||65% maximum (100% with additional security)
And 100% Build financing
|Loan term||3 to 24 months|
|Loan amount||£26,000 up to £250m|
|Interest options||Rolled-up, retained or serviced|
|Interest rates||From 0.44%|
|Decision||Immediate decision in principle|
|Completion||In under 3 weeks|
|Early repayment fees||None|
|Availability||Secured on assets in UK & Europe
Individuals, Companies, SPVs
No credit & adverse credit considered
|Exit strategy||Sale or refinance|
Designed to be used when a normal bridging loan is too short term or cannot offer the capital needed to progress a project, it is a specialist product designed around the timescales and financial requirements specific to the construction sector.
At the end of the building or refurbishment project, the property finance facility is normally repaid through sale of the properties or through a re-finance agreement.
The interest rates on a development loan will depend on the size of the project which is being funded, the value of the security on offer, the value of the property once building work is completed and the amount of money being borrowed.
Experienced property developers with more established track records will generally benefit from the most competitive interest rates for development finance funding. However, Finbri are happy to work with first time property developers and will make a lending decision based on the strength of the proposed project plan.
So how does development financing work?
If a borrower is looking to purchase land with planning permission, or obtain a change of use on an existing building and develop it into 10 residential dwellings, they may first consider a bridging loan. However the costs of construction would exceed the value of the only asset they have (the land or the building), and the short time scales inherent in bridging loans would not offer the time needed to successfully finish the construction – meaning that a bridging loan would not be a suitable choice for finance in this scenario.
Development finance allows up to 65% LTV to be raised against the initial asset, the land or existing building, and in addition to this up to 100% of the build costs for the actual development. The build costs are divided into tranches and released/drawn down as the build schedule progresses. As the build schedule progresses the value of the asset increases relative to the loan being drawn down ensuring that the LTV remains within the agreed lending criteria.
At the end of the construction, the property is usually either sold or refinanced using a traditional mortgage and the original finance repaid.
Find the best rates on your development finance
We offer experience-based, impartial information and accessing quotes from the whole of market. Because we have incredible relationships with most of the UK's lenders we're also able to move fast - seriously fast and can give you an in principle decision within 24 hours.
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