How does the Property Development Loan process work?
We have years of experience in helping our clients apply to finance their property development projects and we will guide you through the process. This will always start with a conversation with one of our consultants:-
- Initial enquiry – understanding you and your plans. We will ask you to provide as much information about your project, estimated costs and business plan as possible before approaching lenders.
- Research the market and provide indicative terms.
- Site visit with prospective lenders. Our lenders like to meet you on site to assess the project’s viability and this is where your relationship with the lender begins.
- Formal loan offer issued, once the lender’s credit team has reviewed all information. This will include the terms on which they are prepared to offer, subject to valuation.
- Valuation of the land and planned project. This will include a valuation of the existing site, the expected Gross Development value (GDV) and commentary on the exit strategy once complete.
- Monitoring Surveyor Assessment This will be a detailed assessment of the build costs and set out an agreed draw-down timeline.
- Legal process. Once the offer is signed, you will need to appoint a Solicitor to represent you and the Lender will have separate representation. It is important that you choose a Solicitor with experience in dealing with the lending process.
- Completion of the loan. The first payment is paid on completion, followed by further draw downs at agreed stages throughout the build.
- Repayment of the loan
How can Sterling Commercial Finance Help?
At Sterling Commercial Finance, we’ve been helping businesses access funding for over 20 years. Get in touch with the team today to see how we can help your business.