Are you excited about the next project? It could be building a new commercial property, redeveloping, or refurbishing the previous property. Having enough capital to spare for this purpose seems practically impossible. However, you are lucky to be in the UK to have development finance at your disposal.
Getting a bigger portion of the development cost as financing is easily doable. You have to find the right finance provider. TheBusinessFunds, your own business loan broker, is ready to become a medium through which you can search for development finance lenders.
This type of financing solution usually focuses on two major areas:
Buy the site: The initial finance segment provides financial assistance to cover the purchase cost.
Build the site: The later segment will help you meet the cost you will incur to build the development project.
The significant features of this funding are:
Property development finance is relatively a short-term business funding source. It lasts between the terms of 12 and 36 months. The finance providers in the UK have customised it especially to help during the purchase and construction cost related to different commercial development projects (residential ones are also there).
You can avail of this finance for property development project you want to handle and the commercial circumstances. The cost for the purchase or renovation of the business property is easy to manage once you get access to this funding. Stop here if you want to explore quick and short-term funding opportunities.
Our exclusive panel of lenders need no introduction. You can expect a bespoke offer from any of the development finance lenders. It will align with your preferences and needs.
You can rely on this financing solution to transform your project development idea into a reality. Consider having the assistance of finance even though you maintain a business cash reserve.
Exposure to a perfect lender can entirely change the game for you. The best thing about this business loan for property development is adaptability. You can use it for many different purposes:
For new development work
This financing is applicable to use for ground-up builds. You get to start with an empty plot. Gradually you have to give it the shape of a commercial property. Using this type of funding can make the process a lot easier.
Renovation purpose
As a development finance broker, we understand how you might need additional fund support to renovate a portion of the property. The absence of required funding can hold you back from finishing this task. Cover this funding gap by borrowing these finances.
Aesthetic improvement
Remodelling of an already developed commercial property requires planning and financial arrangement. While you focus on the former, let finance for real estate development to take care of the latter. Aesthetic improvement is a part of the refurbishment task.
Purchase property at auction
You are free to use this financing option as short-term money to purchase property at the auction. Therefore, you can depend on this fast-to-avail finance option to get a property at a much-discounted price. Look for the best offers made available by premium development finance institutions.
Invest in self-development projects
If you want to work on a project you have created from scratch, this funding option can give the required support. However, make sure if it is perfectly fit for the purpose or not.
Investing in property development is not an easy task to do. It can prove costly if you opt for the wrong deal from development finance lenders. Therefore, having the right loan product from the right provider becomes very important.
Fortunately, a number of development finance institutions are available in the UK. They offer an array of products that can fulfil the needs of various property developments. However, most of them provide finance according to your company’s development experience and prevailing financial circumstances. They can offer up to 85% of the maximum loan value.
Can development finance cover 100% of build costs? It is the hardest goal to accomplish, but you can contact the particular lender.
At TheBusinessFunds, you get a long list of commercial development finance lenders. They have flexible lending policies. Thus, you can compare them well and choose one that can fit your business needs.
To simplify it, we have listed the top 10 lenders offering development finance for your commercial purposes. However, there will be more in our network. You can be familiar with them by applying here.
Meanwhile, here are a few of them:
| Commercial Development Finance Lenders | Starting Loan Amount | Maximum Loan Value | Maximum Loan Term |
|---|---|---|---|
| Octopus Property | £50000 | 85% | 30 Months |
| Oblix Capital | £200,000 | 70% | 24 Months |
| Fortwell Capital | £5 million | 80% | Not Available |
| West One Loans | £1 million | 70% | 24 Months |
| LendInvest | £200,000 | 70% | 24 Months |
| Hunter Finance | £2.5 million | 60% | 15 Months |
| Hope Capital | £5 million | 75% | 18 Months |
| Assetz Capital | £10 million | 75% | 24 Months |
| Sancus | £10 million | 75% | 24 Months |
| Close Brothers | £20 million | Not Available | 18 Months |
The business expansion would require upgrading the already existing commercial site. It would even need the inclusion of a new property. In both these situations, you need to arrange adequate finances. Failing to do this would mean putting a question mark on the growth of your business.
We will let you come across many different property development finance lenders in the UK. The major purpose behind doing this is to diversify options for you. It makes it easy to choose something as per your budget and requirement.
This financing option is undoubtedly perfect to meet the expenses of building a commercial property from the ground up. You can utilise it to finance major renovation projects even though you might need a significant amount of loan.
This popular financing option works around different types of property options. The twist here is that you can also use bridging finance for property development purposes. You can utilise it to cover the property's gap between selling and purchasing. Let this
The flexibility to use commercial property mortgages as development finance is a huge thing. It eases off the process of buying, refinancing and remortgaging a property. It is a valuable source of finance for various types of businesses. You can even acquire a new business by making use of it.
We are an honest and reliable property development finance broker in the UK. We will always guide you to deciding appropriately. It is up to you to decide if this financing route is best suited for your circumstances. Our emphasis will be on helping you validate the benefits of this financing option.
Scope of handling larger projects
The borrowing limit is quite wide as you get the opportunity to flip through different property development finance options. You can borrow up to 90% of the total cost. If that happens, you can barely invest the remaining 10%.
Amplify return on investment
When you use finance, you put in less money towards the project. You can take advantage of business transactions to ensure a significant return on investment. Here, you will push your money to work hard and earn a good return.
Extended repayment schedule
Access to custom-made finance offers lets you enjoy flexible repayment conditions. We promise to contact one of the trusted development finance institutions that can agree to give financial support with repayment flexibility. Paying back loans will not be tricky if you agree to work with us.
Facilitate rolling up of interest
When you draw a comparison between development finance lenders in the UK, it becomes easy for you to discern which offer is best. In addition to it, you can even roll up interest and other fees and add them to a new loan. You have to work out the best deal by consulting with us.
Fast release of funds
Every project development work needs to complete within a defined timeframe. Managing finances is indeed a tricky job, primarily when you are relying on traditional lending sources. We can show an alternative in the form of development finance, which is super quick to obtain.
Development finance functions differently from those of bridging loans. In the latter, the lender accesses the property's value and then frames a loan depending on that value and the applicant's qualifying conditions. On the other hand, finance for property development involves the predicted value of the property just after the project’s completion.
The very first thing you must do before getting started with it is to decide between the options. Enjoy effortlessness by being aware of commercial requirements and the financial stature of the business. Then, figure out the total amount needed for the renovation work.
Now, you must make confirmation about the borrowing limit by:
You can head over to experience the next stage of the working procedure in this manner:
The price is a complex concept as it involves different fees and charges. We will break down the development finance rates for your convenience. You can conceptualise it from here itself.
Interest rates: The interest will occupy the biggest portion of the entire cost. It will vary from lender to lender. Consider opting for a low-risk financial product to get the lowest rates. However, you can compare and pick competitive rates.
On average, the interest rates on property development finance start from 4% annually or almost 0.34% per month. One needs to make extra efforts to achieve the best rates on business loans for property development. For this, you should work on these aspects:
Fees: Different fees included in the cost are arrangement or facility fees, exit fees, valuation fees, non-utilisation fees etc. The lender will levy these fees. If you find anything too expensive, contact our representatives. They will discuss with the lender on your behalf and do their best to bring out an ideal outcome for you.
We will not impose any fees for our brokerage services. The lender will offer a commission after deal acceptance.
As a property development finance broker, we listen to your business requirements. It helps us source the most suitable finance provider. We are ready to proffer full guidance support throughout the borrowing process.
Is it really worth it to get in touch with us? Find it here:
We work with lenders who will give individual attention to every project's needs. They will tailor finance deals based on your requirements.
The processing takes little time. You will have a swift and streamlined experience with us.
Since we operate online, you can reach out to us from any part of the country. Navigate through our website for additional information.
We have been closely working with the development finance market for a long. You can trust our market familiarity to search for the perfect lender.
Getting financial assistance to cover the cost entirely will depend on the lender you will find. Besides, you can look for joint venture finance to get full coverage for your financial requirements. It will comprise senior debt and equity pieces.
Both of these financial arrangements focus on a common point. It is to plan ahead of starting the development project. Significant extension work in the project site will require finances. In case when the extension is avoidable, you can go for either of the options.
You can follow any of the ways to pay back the finance. These are:
You must take out money through finance for property development by pursuing these aspects:
Validate Cost: Compare if your project will cost you more than what you can pay for.
Lender’s visit to the site: Manage your time to allot it when the lender pays a visit to your site.
Provide complete information: Your application must include valid and complete information for successful processing.
Development finance is a short-term funding solution. Therefore, any sort of businesses, whether small scale or large scale, can use this option. Nevertheless, this type of financing solution is accessible if you have businesses like:
