Property Development Finance
At Sterling Commercial Finance, we regularly arrange development finance for clients looking to develop a property. Property development finance is for experienced property developers and private builders.
Our panel of lenders has excellent reputations for their expertise, speed, flexibility and reliability. In most cases, a higher level of loan to value can be obtained from such specialist lenders than can be obtained from traditional high street banks.
Applicants need to be able to confirm they have experience in undertaking developments of the size requiring funding. Examples include the purchase of either land or buildings in the past, development the site and then on-sold or converted successfully onto Buy to Let finance.
We do have lenders that will look at propositions whereby there is a stable build team in the background that will work with you if you have never managed developments in your name in the past.
Property Development Finance is available for:
- Commercial Development
(Pre-let or pre-sold agreements are customarily required)
- Residential Development
(New build, conversions, extensions)
- Mixed Development of Residential and Commercial
(Pre-let or pre-sold agreements usually are needed)
- Property Trading
(Acquisition, refurbishment and onward Sale).
- Investment Portfolios
- Loan Size £100,000 – £5 million
- Term Up to 12 months
- Longer terms available inline with project timescales
- Loans towards the land purchase or repayment of an existing loan depending on the project.
- 100% of the build costs
- In general overall lending not to exceed up to 55% of the end value, including interest roll-up.
- Lender’s surveyor will monitor work done, costs and timetable.
- Stage payments are in arrears on monthly project certification.
- Sites to have detailed planning in place before the purchase of land and drawdown of build costs loan.
- As a guide, projects should show a minimum of 25% profit on cost
Applications to Lenders
Professionally prepared credit applications support all Property Development Finance cases, thereby significantly enhancing the chances of our clients securing the required financial package. In the current lending climate, it pays to have your application put together by industry experts, who know what information lenders require.
- Outline Development Appraisal states what is to be built, where and final outcome. i.e. Sale or retain for rental.
- Costings summary to include a contingency and an estimate of end values.
- Copies of the project’s planning permission and building plans.
- Assets and Liabilities Schedule of the applicants/directors
- CV from all applicants stating their past development experience.
Sterling Capital Reserve is an independent brokerage, regularly arranging Property Development Finance for Clients. Our panel of lenders has excellent reputations for their expertise, speed, flexibility and reliability. In most cases, a higher level of loan to value can be obtained from such specialist lenders than can be obtained from traditional high street banks.
Sterling Capital Reserve has experienced Commercial Property Development Finance Consultants who can assist clients throughout the underwriting process, from enquiry to completion.
Professional credit applications increase the chances of our clients, securing the optimum property development finance package.
Once we have obtained all the relevant information about your property development project and your business requirements, we can assist in any ‘negotiation’ process with lenders to secure the best possible property development finance terms for your business.
We will go ahead that extra mile to ensure our clients welfare, our working hours convenient to our Client’s needs from our first contact.
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