Development finance allows small house builders to borrow funds on a staged draw-down basis. Funds are used for the build costs of a development. On sale or refinance of the properties interest and capital is repaid. 

Development Finance 

3 – 24-month facilities 
£100,000 to £500,000 (can be used in conjunction with bridging finance facility to a max of £2,000,000) 
Ground up developments 
1st and 2nd legal charge against land, commercial or residential 
Security can be owned by the business or personally 
Property conversion 
Personal guarantees 
Interest serviced or retained 
Milestone drawdowns only no QS monitoring 
Max of 5 drawdowns 

LTV’s 

All LTV’s are based on Open Market Values 
Land with full planning permission 65% 
Additional Security 
Residential property < £1 Million 75% 
Residential Property > £1 Million 70% 
Residential portfolios 70% 
Commercial Property < £1 Million 70% 
Commercial Property > £1 Million 65% 

Pricing 

Set-up fee from 2% 
Monthly interest rate from 1% of gross loan 
Exit Fee 1% 
Interest serviced or retained 
Lenders legal fees and valuation fees to be paid by the borrower 
Monthly monitoring fees (if applicable) paid for by the borrower 
Capital can be repaid adhoc with no penalty (on the sale of each property) 
Interest paid on the highest balance outstanding in the month 
 
 
 
 
 

Talk to us today to see how we can help 

 
 
 
 
 
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