When undertaking a property development it is likely that funding of some description will be required. Whether the project is a commercial or residential build, there are a number of finance solutions available which will assist you to fund the development.
Cranfield can source the lender who is best suited to your requirements. The level and cost of the Development Finance will depend on the basis of the proposition and your experience/track record in completing such development projects. Our team has the experience to assess the viability of such projects and will assist in presenting the application to the appropriate lender.
So how does Development Finance work?
By borrowing against the anticipated increased value of the site, developers can achieve higher loan to value funding levels. Key to securing these increased levels of funding will be whether the site has secured either outline or full planning permission. Regular drawdowns can be agreed up front for small projects whilst interest payments may in some cases be postponed until the completion of the development.
Larger developments will typically require a site visit by a quantity surveyor (“QS”) to assess the progress of the project and agree drawdowns on account. The QS is usually appointed by the lender with drawdowns released in arrears and typically paid within 48 hours of request.
What types of finance are available?
There are various forms of finance available for projects that have a comprehensive viability plan i.e. a detailed development appraisal which includes items such as full planning permission, cash flow projections etc... These forms of finance are generally referred to under on or more of the following three types:
The search for the right financial solution begins & ends with Cranfield, so contact us today.