Development Finance
Development finance does pretty much exactly what it says on the tin. Developers will look to take out development finance loans toward the costs of developing property, whether it is from the ground up (ie building from scratch) or a significant development of an existing building, such as converting an empty office block into residential units. The amount of loan that a developer is able to secure will be based on what the expected value of the property will be once the work is completed (the GDV - gross development value). An initial advance is available for an upfront purchase and then the rest of the loan is released in stages once the development hits certain thresholds.
When looking at development finance there are certain key elements that will affect your ability to get a loan and the best possible rate:
- Your Experience within the property development sector
- The speed with with the fiance is needed
- The type of asset (eg land or a pre-existing property) and whether or not planning permission has already been granted
- The amount of deposit being put in by the developer and their funds they have available to put towards the building project
- The scale of the project and the anticipated time scales
- The gross development value
There are many other factors that lenders will take into account when assessing an application for development finance and that is where we come in. Here at The Friendly Mortgage Co. we have an expensive knowledge of the market and we will use our expertise to significantly improve your chances of a successful application whilst empowering you with all the knowledge that you need throughout the process.