Development loan 

This is a very specialist area and an area that many funders avoid. We can usually fund 65% of the purchase price of land (but not soft costs such as stamp duty, legal fees or VAT (if applicable) and then 100% of the build/conversion costs (excluding VAT if any) subject to monthly QS reports. These days it is almost inevitable that lenders require a fixed term contract from a reputable builder and for the borrower to demonstrate experience in building new properties or conversions. We can fund everything from single houses (which are much easier to do) to new estates, blocks of apartments, mill conversions and commercial projects up to £100,000,000 and more if necesasary. 

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However be prepared to provide us with the details of your project. A great deal of information is needed to fund a medium to large scale new build or conversion project. Funding up to 4 or 5 new build houses is easier to navigate but again detail costs estimates and a builder on a fixed price JCT or equivalent contract will likely be required as well as provision for an NHBC or equivalent warranty when the project is complete.

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Small new builds can be funded in a less stringent way especially if the loan to value is less than 65% or if there is other security available. Some funders will provide 100% funding but will want an equity stake in the finished project and will again insist on a reputable builder with a proven track record of carrying out new build projects.  

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Should you wish to enquire about a development loan, fill in our quick enquiry form and our Property Development Checklist from the forms page and e-mail it to us with your supporting documents to start the process.