Property Development Loans
Property Development Loans
Property Development finance is a type of short-to-medium term secured business loan. It’s typically used for property development projects, such as renovations, and conversions, or to purchase undeveloped land and build property on it. Property development finance can be used by private individuals, property developers and businesses.
✅ We source both senior debt and mezzanine finance up to 90% of the project funding requirement
✅ 100% project finance where additional security is available
✅ Finance available for all residential property types throughout the UK
✅ We facilitate joint venture / profit share commercial contracts
✅ 100% project finance where additional security is available
✅ Finance available for all residential property types throughout the UK
✅ We facilitate joint venture / profit share commercial contracts
✅ Short term bridging finance available from £10k - £15m, 1 Day to 24 months
✅ Smaller refurbishment projects supported from £25k upwards
✅ Commercial projects supported including hotel developments and student blocks
✅ Support for established developers and investors using a recognised building contractor
✅ Self-build loans available for single unit developments
✅ Commercial projects supported including hotel developments and student blocks
✅ Support for established developers and investors using a recognised building contractor
✅ Self-build loans available for single unit developments
Property Development & Refurbishment Loans
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Property Development Loans
What is Property Development Finance?
A property development mortgage is a commercial short-term loan generally offered in two stages – the site loan (purchase or refinance) and the construction loan.
Both elements are secured on the development site in question and the building project as it develops but can also be secured wholly or partially on other residential or commercial property assets owned by the applicant (additional security).
How Does Property Development Finance Work?
The development loan provides the applicant with the means to complete on the purchase of the site if necessary or to re-finance the site if encumbered to another lender, or the site can be used as client contribution if valued sufficiently so the lender just funds the build costs.
Once the development or refurbishment program commences, funds are made available to be drawn down at agreed stages to assist with the development, refurbishment or conversion costs associated with the project.
How to Get Finance for Property Development?
The availability of funds for property development and refurbishment projects continues to grow and we have access to over 40 lenders providing support.
The majority of property development and refurbishment lenders are interested in lending on pure residential schemes:
There are a smaller number of lenders in the market that will lend to develop pure commercial schemes and specifically we can support:
Current key criteria includes:
If properties are to be retained on completion a long term re-finance option can be provided.
If you’d like to arrange a no obligation exploratory call to discuss, please get in touch.
The majority of property development and refurbishment lenders are interested in lending on pure residential schemes:
- Residential housing - single / multiple units.
- All residential property types supported – houses, terrace, mews, flats.
- 'Affordable' housing schemes are favoured and those with a mix of affordable and higher value units.
- Conversion or refurbishment of existing dwellings with the appropriate planning permission.
- Major residential refurbishments including conversion of former commercial properties to residential units under Permitted Development Rights.
- Purpose built student accommodation in high demand areas close to universities.
- Completion of existing ‘distressed’ developments subject to the availability of current and satisfactory monitoring reports.
There are a smaller number of lenders in the market that will lend to develop pure commercial schemes and specifically we can support:
- Mixed use schemes for example a combination of residential apartments with ground floor retail units.
- Commercial and industrial schemes which have pre-sale or pre-let contracts in place to strong covenants.
- Purpose built assets and conversions such as nursing homes, day care nurseries and hotels for operators with a strong business background and good financials.
Current key criteria includes:
- Applications should be supported by good evidence of demand in the local area.
- 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.
If properties are to be retained on completion a long term re-finance option can be provided.
If you’d like to arrange a no obligation exploratory call to discuss, please get in touch.
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Would Highly Recommend Using Equinox Commercial Finance
"Simon helped us secure a mortgage on a commercial property to be used as a Children's Nursery.
From the start Simon helped us understand our options and quickly came back with the best quotes available.
He then helped with all the paperwork and documentation needed to provide to the lender and quickly came back with a finance offer that suited us.
I would highly recommend Equinox for any commercial lending."
Matthew Butterfield
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Office 1, Pen Y Dalar, Main Street, Thornton Le Moor, Northallerton,
North Yorkshire, YO7 3BX
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Equinox Commercial Finance Ltd (FRN: 841410) are Credit Brokers and Appointed Representatives of White Rose Finance Group Ltd (FRN: 630772) Authorised and Regulated by the Financial Conduct Authority. PLEASE MAKE BORROWING DECISIONS CAREFULLY, PROPERTY OR OTHER ASSETS OFFERED AS SECURITY MAY BE AT RISK IF YOU CANNOT KEEP UP WITH REPAYMENTS.