property-development- finance cheshire

Development finance

Business finance to assist with developing, renovation or building a new property 

Arranging finance for a property development can be a key factor in ensuring the development will be successful. Having money available at the correct time can help to get a property development under way, it can help to market the development and can guarantee that your property development project gets completed.

At Godwin Austen we work closely with our lenders to assist with arranging development funding that works for our clients and allows them to work in both the residential and commercial sectors of the property market.

Get your property development off the ground

We work with several lenders in the property development finance sector, we research the best deals to suit your needs. We do not necessarily just look for the deals that have the lowest rate, we also look for flexibility within the finance to ensure that the arrangement is workable in the event that certain areas for the property development take longer than anticipated. Many of our lenders understand that property development is not an exact science; planning can be knocked back, construction can be delayed, etc. Our lenders know this and can build in flexibility into the financial terms so that should your development encounter any issues it will not derail things.

What can property development finance provide?

  • Finance for both residential and commercial properties within the UK and Northern Ireland.
  • We can arrange funding of up to 100% of the construction costs and up to 75% of the property value.
  • Finance with low interest rates, starting at just 4.5%, with funding starting at £25,000
  • Decisions in principle can be given within less than a week
  • Development finance can be arranged for most property types including new builds, conversions and refurbishments.

Property development finance FAQ

How quickly can I get a decision on my property development finance?

In principle a decision can be given within 24-48 hours, dependant on the speed that full details of the development can be given to us.

A formal offer letter can also be sent out within 24-48 hours of getting a decision in principle

 

What is the maximum I can borrow for my property development?

Up to 100% of the building costs can be funded, and up to 75% of the property purchase price can also be fully funded.

 

How long is the term for the development finance?

Usually our property development finance are for a 12- 18 month period, however longer terms can be arranged, dependant on the project.

 

How does the interest work with property development finance?

The usual practice is to have the interest rolled up to the end of the projection order. This helps to ensure your cashflow isn’t effected too heavily. The aim is to make help the project complete as quickly as possible,, so that the lenders get repaid with interest quicker.

 

This is my fist project, is property development finance available?

Probably not. The lenders like to know that they are putting their money into a trusted development, so first time property development projects are usually rejected. However if you are skilled in a sector related to property (QS, Architect, etc) then this would be taken into consideration and could help with approval for a first time project.

 

Does my development need to have planning permission before I can get development finance?

In almost all cases yes, you will need to have planning permission approved, or at the very least Outline Planning permission. The lenders will not approve development projects that do not have this as the risk factors are too high.

However again if you are heavily experienced in the sector, with several successful completed projects and/or a very strong development project, some of our lenders will happily work with you.

 

What will my costs be for the property development finance?

Usually the average interest rate from our lenders is around 4.5%. But the exact figures do depend on which lender we go to once we know the full situation of the property development project and chose which lender is best suited to your needs.

 

Are there any fees to arrange the development finance?

There is usually a 1% fee charged for arranging the finance and you would need to pay the lenders legal and valuation fees. In some cases there may also be an arrangement fee applicable, but this depends on the specific lender.

 

What do I need to be eligible for property development finance?

You need to have proven experience within the project development industry. And be able to provide detail information about your intended development including schedules, planning works, planning permission, etc

If all of this sounds good and you think development finance is the product for you, please give us a call or email us to make contact.

Or if you feel that our development finance packages are not suited to your needs please check out our other business finance services.
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