Property Development Finance
What is it?
Property development finance is a type of business finance used for the purpose of funding a residential, commercial, or mix-use property development. It’s a fairly broad category that covers term loans, mortgages and bridging loans.
You might use it to fund a new residential housing project, workspace development or regeneration initiative. Development finance is likely the most appropriate form of property finance for ground-up developments, such as building a property from scratch.
How can CashMoney UK® help you?
Whether a major refurbishment, new build or a ‘ground up’ development we can offer finance tailored specifically to your project and individual requirements. We can source funding for residential, commercial, industrial, and mixed-use projects as well as part-finished developments.
What types of projects can we support?
- Residential housing
- Purpose built student accommodation
- Refurbishments & Conversions
- Mixed-use commercial & residential units
- Purpose built assets & conversions (e.g., nursing care home)
Under normal circumstances we provide loans equivalent to 70% of the estimated GDV of the project however, for experienced developers and if additional security is made available, we can often provide funding up to 100% of all site purchase, development, and finance costs. We can also introduce ‘Mezzanine Loans’ secured on a 2nd charge to provide any additional ‘top up’ funding.
Tips for applicants
Any applications should be supported by good evidence of demand in the local area. If properties are to be retained on completion, a long-term refinance option can be provided. Mixed use and Commercial Schemes can be supported subject to a demonstrable demand on completion.
Developments should demonstrate sufficient margin to absorb any possible future reduction in the anticipated Gross Developed Value (GDV) of the project. The borrower or proposed main contractor should have a good CV and be able to demonstrate experience in the sector.