What is development finance?
Development finance is a term used to describe property development finance. It can cover development of either residential or commercial properties.
The short-term loan involved usually helps the management of land costs, as well as the cost of the development itself.
It’s based on gross development value – i.e. what will the site be worth when the refurbishment or construction project is finished. The loan is paid back in stages, ideal for those building their own home and for businesses involved in huge residential developments.
Residential Development Finance
We know how hard it can be to plan and arrange your project. This is why we take the challenge of arranging your finance out of the equation, bringing together a team of professionals entirely focused on ensuring your finance is secured quickly and with the minimum of fuss.
Our loans are tailored to the requirements of both the borrower, and the project itself.
This means you don’t get caught out when it comes to finance, and any challenges linked to the development aren’t exacerbated by irresponsible and poorly thought out lending.
What do I need to apply?
In order to apply and qualify for development finance, you will require a team of professionals to cover the various aspects of the build from beginning to end, these will include builders, architects, and project managers depending on the scale of the project. The other key element is the development appraisal, this details the costs of the project from both a build and finance perspective.
How much can I be funded?
The lender will work out a payment structure to suit your project. This will be dependent on whether you own the land already or require funding for the land as well as the build costs. In either circumstance the lender will typically fund around 70% of the GDV. Funds are usually released in pre-agreed trances, and a surveyor will review the project to make sure it is on schedule before releasing each of those payments. The lender will also build in a margin so at every stage they are not at 100% LTV.
How can Belgravia help?
First of all, we accept all manner of projects, and we can help build-out the finance element of the project costs, to get you approved with lenders. What’s more, it doesn’t matter if you’re a non-experienced or experienced developer. Belgravia can offer valuable assistance on both ground up developments and heavy refurbishments. And please remember – we can assist with self-builders i.e. those looking to build a home for themselves to live in.
Secondly – Belgravia works in most areas of the current market, including retail, office buildings and other private and commercial sectors. We make ourselves available to help and guide you from the outset of the project.