What’s it used for?
In todays market, the vast majority of development finance deals come from developers looking to fund new build projects. Whether it be a new build housing project or apartments, it’s seen as a popular finance solution amongst our clients in that space. However, development finance isn’t limited to this area at all. In fact, it can include commercial units, mixed-use transitions (e.g. a supermarket on the ground floor of the development with apartments built above) and sometimes much larger projects such as an industrial office block being converted to apartments.
Factors & Scenarios
With development finance, much like most other finance solutions, there are hundreds of different factors and scenarios that come in to play when looking to broker a deal. That said, there are a handful of typical client scenarios that are seen as ‘industry standard’ and would be super easy for our team to deal with and deliver on in a cost efficient manner:
- Developers with experience looking at alternative funding options
- Property investors looking to increase the gross value of their portfolio through new build
- One-off developers looking to secure finance
Criteria for Development Finance
- Market-leading rates
- Up to 90% loan to value (100% funding in some instances) – Developments throughout the country
- High-end single units or large multi-unit schemes
- Products for in-experienced developers
As many of our clients will know, the development finance sector has advanced massively in recent years and can be acquired through a broad range of lenders (merchant and investment banks, private lenders, specialist invest funds and even mainstream banks). Each of our lenders will have their own credit scoring criteria that will need to be met in order to secure funding, meaning no two applications will be the same. We use our knowledge and experience to match you with the best lender in this sector based on the information provided.