Development finance is available for light, medium or heavy refurbishment of existing residential,
semi commercial (e.g. shop with flat above) or commercial properties. This type of commercial finance
can also be arranged for the conversion or new build of any property type on either greenfield (new)
or brownfield (prior use) land.
It is essential to establish that full and appropriate Planning Permission
is held together with any relevant additional licensing.
All lenders will require sight of 'target' property or land particulars, full details
of any previous direct experience, copies of Planning Permissions and consents as
appropriate, and a detailed timeline of costings illustrating clearly how and when
scheduled costs will be incurred. They will also require evidence of deposit.
It is normally Status lenders who provide development finance with LTVs of 60% to
65%, subject to an overall maximum of 65% of the 'end' value.
More experienced, professional developers can benefit from 100% of build
cost funding, subject to profit margins etc being realistic.
Typical interest rates for commercial development finance are truly bespoke and are
assessed on a case by case basis depending on the nautre of the development.
Rates, terms and flexibility will vary according to the client and type of development.