Development Finance
Looking to secure finance for your property development? Kingsbridge Specialist Finance can help.
Realising your property development dreams requires the right financing. We can work with you to find the right lender to fund property development projects of all sizes. From small renovations to large-scale developments, we have the resources and experience to help you secure the necessary funding.
What is Development Finance?
Simply put, raising money to finance the building of residential or commercial property. Usually with the intention to either sell on for profit or retain for rental as a buy-to-let.
What are the key factors to think about when arranging Development Finance?
- The cost to buy the land initially – The loan may cover the entire purchase price or a percentage of it.
- Build Costs – Having a well costed, realistic idea of how much the project will cost to build is absolutely essential.
- Timeline – Development projects can take months or even years to complete. Development finance is structured to deliver funding throughout the project, enabling the developer to manage their cash flow and pay contractors all the way to completion.
- Development Finance Rates – Interest rates will typically be higher than those associated with traditional mortgages due to the higher risks and shorter-term nature of development projects. Often, the interest is rolled up and paid at the completion of the loan by the developer.
- Fees – Lenders will charge arrangement fees, sometimes an exit fee when the loan is repaid and there will be legal and other professional fees to budget for.
- Loan-to-Value (LTV) Ratio – Lenders often assess the loan amount in relation to the assumed value of the finished property (Known as the GDV – Gross Development Value). The LTV ratio helps determine the level of risk for the lender and influences the terms of the deal.
- Exit Strategy – Lenders will want to understand how the developer intends to repay them at the end of the project. This could involve selling the developed property or refinancing on to a longer-term mortgage product.
If you’d like to discuss arranging development finance in more detail, please fill in your details below and we’ll call you back.
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Your Home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it.
Some forms of Buy to Let mortgages and Commercial Finance are not regulated by the Financial Conduct Authority.
Reviews
Very smooth process and speedy service plus useful advice!
Thank you very much James (speak again in a couple of years 😅)
Thank you very much James (speak again in a couple of years 😅)
James’ communication is second to none! He’s got a wide range of lenders available so his ability to get the very best deal out there is unmatched!
James was recommended to me by a colleague and provided a first class service from beginning to end, his wealth of knowledge within the sector assured a great deal that left us completely satisfied.
Working with James has been a breath of fresh air. Having been a developer himself he is someone who knows what you need and knows the pitfalls and headaches that come with raising finance. He has guided me though this really well and been a source of calming sage advice. I would absolutely recommend him and Kingsbridge to anyone looking to raise finance for development.
James is highly professional, exceptionally knowledgeable and very personable. He has made our experience of borrowing money stress-free, and has gone that extra mile to make sure we were fully informed; taking the time and trouble to make sure we had the very best deal available. Even though our case was not necessarily straightforward, James explained all options in language that we could understand, and supported us through every step of the process. Always happy to chat through any queries, James has made remortgaging enjoyable and I highly recommend him for all your mortgage needs.
James has taken the time to break down all the information on various lending options to help me decide what loan options to use which helped grow the business. I would recommend.
Jim is absolutely on-top of the mortgage process. He’s helped me secure three mortgages including residential and HMO buy to let. Hard working and even assisting on a Saturday evening when competing for a propert in bristol, which with Jim’s help I was lucky enough to get the offer accepted. The agent fed back that the vendor went with me due to the speed we managed to get all financials in order and how on top of it we were. Thanks a lot James and will use and recommend to friends and family for sure.
James has been absolutely superb in helping us with our mortgage for our recent move. I’ve been blown away by how quickly James managed to get things done for us! Ive been dreading the whole process but with James it’s felt effortless! I’ll be certainly recommending him to my friends and family and will be 100% using him again! Thanks for everything James!! It’s a shame he isn’t a conveyancer as well!!
James has made securing my Mortgage a painless and easy process. Kept me informed at all times and guided me through every stage. Will be highly recommending
Great advice from James at kingsbridge, ended up with the perfect mortgage deal that has hopefully avoided most of the huge rises in interest rates. Thank you !!
