Finance your next development the right way.
Source development finance you can rely on.
Finance for property development and redevelopment.
Are you planning a new property development? Perhaps you’re looking to refurbish or renovate an existing property? In either case, a lot of the success will be determined by the funds you have available. The good news is, there are multiple finance options available for the development of and redevelopment of properties.
Your development finance options
Development finance options are most suited to those who are:
Looking for a short-term loan to purchase and refurbish a property
Want to buy, refinance, or renovate a commercial property
Plan to start a construction project on land they already own
Those purchasing new land with a goal to develop on it
There are of course other more niche circumstances that would warrant development finance, but these are some of the most common.
Types of Development Finance
Refurbishment finance
Commercial development finance
Bridging loans
Commercial mortgages
Joint venture development finance
Mezzanine finance
Residential development finance
How development finance works
How development finance works will depend on the finance option you choose, the type of development, and the lender you borrow from. They’ll each have their own criteria for acceptance, but there are certain things that are more frequently required:
● Planning permission details
● Full cost breakdown
● Schedule of works
● Overview of any restrictions on planning
● Details of the people/firms involved
● Your exit strategy
Most lenders will expect to see a professionally constructed finance application, which is more often than not prepared by experienced commercial finance brokers - like us - who know exactly what should be included and how to present it.
We develop your finance package, you develop the property
Development finance isn’t always straightforward, but it’s definitely achievable. The key is having the right team by your side who can advise and support every step of the way. Here at Key, we have extensive knowledge of the development finance market, including the products available and lenders appetites. What’s more, we have the skills and resources to prepare a finance application that meets the needs of the lender, thus increasing your chances of being accepted.
FAQs
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The amount you can borrow will depend on a large number of factors, including the lender and type of product you are securing, the type of development you’re undertaking, and your financial health.
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Yes, you may still be eligible for development finance if you have a poor credit history. The range of products available to you may be limited, and the rates and terms may be stricter. It’s likely the lender will want to see a clear plan for the project and how you intend to repay the funds.
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Some lenders are willing to fund development for sites that do not yet have planning permission. The amount lent may be less, or there may be an agreement to increase borrowing once planning permission is in place.
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Yes, first time developers can be eligible for development finance. Lenders will normally want to see a comprehensive plan to show how you intend to progress the project and repay the funds. Working with an experienced financial broker can give you the best chance of securing the funds you need.
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Although it is rare, some lenders will provide 100% finance for a development project. There will need to be a watertight business plan in place, and the lender will need to be confident in your ability to see through the project.
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How quickly you can secure and access development finance depends on a number of factors, including the type of lender and product, and the type of development project you’re undertaking. Working with a broker can significantly reduce the risk of unexpected delays and ensure the process is streamlined from start to finish.
Not sure Development Finance is the right option for you?
Sometimes, development finance isn’t the right option and that’s ok. There are other property-related finance products available.
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Need more information or have a question? Our team is here to help. Simply fill in your details, and one of our experts will give you a call at a time that suits you.