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Development Finance

Plan A Short Term Loan With Our Property Development Finance Brokers

Working as a property developer can be a fruitful and worthwhile endeavour. However, it can be expensive to see a project through to completion. Development finance is an excellent option if you're looking to complete or develop a property project, whether a renovation on multiple projects or an entirely new build.

The Lending Channel has worked on sourcing suitable development finance lenders for property developers for many years. As a trusted name in the industry, our team use our connections to broker the best development finance deals available to you. Regardless of your circumstances, we will always work hard on your behalf and aim to deliver a quick, friendly and reliable service every time.

If you require property development finance, it can be arranged as a short-term loan for residential property developments or to help buy land or complete construction. It is then redeemed by either the sale or refinancing of the developed asset.

 

Property Development Finance - The Lending Channel
 

What is property development finance?
 

UK property development finance is an option used by property developers to help cover the costs incurred within the development process. This could include the renovation of an existing property, property conversions or a new build.

The types of development finance available include:

  • New builds
  • Residential property development
  • Commercial property development
  • Renovations or refurbishments
  • Conversions
  • Converting single-unit developments to multi-unit
  • Development bridging loans/bridging finance (used to help finance a recently completed project whilst the units are sold).

A great aspect of this financing option is its flexible use by investors or owner-occupied developments.

However, as with any loan, it's crucial to consult an experienced development finance broker before making any big decisions.

A property development loan works the same way as any other debt secured against your assets, and there will be consequences should you be unable to make payments.

Whether it is your first project or an experienced developer, let us help you find the best rates.

 

How much can I borrow as property development finance?
 

How much you can borrow in development finance loans depends on all the costs involved in a project, including finance costs of the land, development, lender fees including exit fees, professional costs (such as legal fees or planning permission) and any contingency costs in place.

Depending on the lender, the typical amount you can borrow is:

  • 50–70% of the land or site’s total cost
  • 100% of the build’s cost (provided it is within 60–70% of Gross Development Value (GDV).

The maximum term you can take out development finance is between 12–36 months.

In order to apply for development finance, you'll have to supply all relevant information to your lender.
 

What are the advantages of utilising development finance?
 

  • Allows borrowers access to larger sums of money.

  • Funds to get your project underway.

  • The total money borrowed can cover 100% of construction costs, with no specific upper limits.

  • You can secure money on properties and sites that other lenders may consider unsuitable, such as rundown and derelict buildings.

  • You can get your development finance repaid relatively quickly, which keeps borrowing costs to a minimum.

  • Interest is charged only for funds that have been released (which shows the benefits of the funding being spread throughout the stages of a project).

  • In many cases, we're able to negotiate deals with a higher loan to gross development value, which results in minimal spending from the property developer's own pocket.


How does property development finance work?
 

This form of financing is always tailored to a specific borrower's requirements and their project's specifics. The key stages in the process for development finance/development loans are:

  • An initial enquiry (free advice and an obligation-free consultation)
  • Agreement in principle is issued to the borrower (the indicative terms of the financing)
  • Development site visit (to establish the project's viability)
  • An independent valuation of the project's value
  • A formal loan offer
  • Solicitor involvement (legal support and advice)
  • Completion of the loan and the first payment
  • On-going instalments to fund the project if required
  • Repayment of the loan at a later date.

 

Property Development Finance Brokers

 
We make finding the best development finance lenders for you an easy task
 

Finding the correct development finance loan can be a daunting and time-consuming endeavour. It requires a lot of research and often direct communication with lenders to source the very best deals.

Our expert team at The Lending Channel can help take the pressure off by guiding you through the process from start to finish.

Using our long-standing relationships with the UK's top lenders and our track record of excellence within the industry, you can be sure that we will compare and secure the best development loan rates for you.

We have you covered; get in touch for any advice or to discuss the wide range of financial services we provide, whether you are:

  • An experienced property developer
  • Developing your first property
  • Buying at auction so you can refurbish and flip for profit
  • Building your property portfolio
  • Partway through a development project and require funds
  • Converting office blocks to residential properties
  • Developing student pods/student accommodation.

 
Bespoke advice from our expert team
 

Whatever your circumstances, we will always look for development finance appropriate to your specific needs. It's important to us that we get to know you and your requirements very thoroughly.

That way, we won't waste your time by suggesting you apply for loans that aren't suitable for you or won't accept you as a borrower. What sets us apart is that we take the time and care to clarify what you truly need and target deals based on the information we collate about you.

Our advice is always impartial, and we'll never push you towards a certain outcome. We can also offer you advice on other avenues available to you, such as development exit finance options and other aspects of your property development project.

Don't hesitate to contact our friendly team at any time for some free, no-obligation advice.

If you're looking for a trustworthy and reliable development finance broker, please don't hesitate to contact today. We look forward to hearing from you.

Specialist Finance Panel

Given that short-term loans, including development finance, are typically more expensive forms of borrowing, it is essential to consider your exit strategy before committing to a finance package.

For example, if you expect to be able to refinance by a particular date, but development work is held up because of a planning issue or utility delay, you could be left at risk if that delays your ability to get a new finance deal approved.

Please note that specialist finance of this type is not usually regulated by the Financial Conduct Authority (FCA); therefore, our funders can afford to adopt a more flexible approach to assessing deals. Whatever your situation, give us a call to see if we can help.

As an FCA-regulated broker, we will only recommend development finance if appropriate for your particular circumstances. If it is not, we will still suggest alternative options for short-term finance that are more suitable.

The quickest way to have your short-term finance enquiry assessed is to telephone one of our advisers on 01738 583008 or complete the online enquiry to start the ball rolling.

Commercial Mortgages up to 75% LTV are also available, with funding available from High Street and off-High Street or non-traditional lenders.
 

Introducers

If you have landed on this page and you are not a direct client looking for a lending solution, perhaps you are interested in introducing business to us? If so, please call now for more details or follow the Introducers Link.

The Lending Channel is a member of the National Association of Commercial Finance Brokers (NACFB).

2/1 King James VI Business Centre, Friarton Road, Perth, PH2 8DY
Tel: 01738 583008 | Fax: 01738 500402

The Lending Channel are authorised and regulated by the Financial Conduct Authority.
Company number SC334818
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