28th March 2020
Development finance is a loan that’s used to fund residential developments, such as new-build construction projects or refurbishment schemes for converting property into flats, bedsits or HMOs.
Whether you’re an experienced property developer, a landlord or you’re keen to kick-start your first new-build or renovation project, there’ll be a development finance route that suits your initiative.
Development finance is a form of short-term funding that will enable you to pay for your construction and development costs. It could mean a ‘refurbishment bridge’ that will fund a few months’ building costs of a light refurbishment project or the more substantial costs from covering your initial land investment outlay to completion of the final plot.
Your lender may agree to finance a proportion of the plot purchase and another percentage of the build – this way you would need to inject far less of your personal money, which would be freed up to cover the cost of other projects or unexpected expenses. When you have a property portfolio with a lot of equity, you can use your property to secure further lending – this could be invaluable when you have insufficient liquid cash to grow your portfolio.
Property development can be a challenging environment and weighing up your best and worst-case scenarios is a critical exercise when it comes to funding your project. Getting your finance right in good time will ensure your development activities can proceed and thrive – regardless of the economic climate.
To find out more about development finance for your next project, talk to our team of expert advisers and we’ll help you find a funding stream that will help you from the ground up. Call us on 08454 500200 or click here to make an enquiry.
We also have a dedicated Property Developers mortgage page, so you know what the options are for you.
financial adviser and I’m so happy with the service provided, firstly by Stephanie, explaining all my options clearly and concisely and helping me get the right mortgage and supporting insurances sorted at the beat rates for me. Secondly Stephanie has a fantastic administration assistant Cara who processed, actioned and chased everything up and kept me informed at every turn. Both Stephanie and Cara sorted out my remortgage and all the insurances set up in just under a month from beginning to end, which I was absolutely amazed at how quick and almost effortless the whole process was. I am very thankful to all at Charters Financial Services for their dedicated and thorough service, their fantastic communication throughout and I can’t recommend them highly enough, and I will be using them again in the future for future mortgages. Thank you Stephanie and Cara
Mark S
April 2020
Discover the latest exclusive offers and helpful ideas.
