Development Finance
Development finance provides tailored funding for new builds and major renovations, with funds released in stages to match project milestones. Ideal for developers planning to sell or rent completed properties, it offers flexibility for a range of construction needs. At A Mortgage Shop, we help clients secure the right solutions to bring their projects to life.
Helping You Fund Property Development Projects
Development finance is designed for individuals and companies building new properties or renovating existing ones. This type of finance is typically short-term and released in stages to cover the cost of construction work.
How Development Finance Works
- Funds are often released in tranches, based on project milestones.
- It can be used for various developments, from new builds to large-scale refurbishments.
- Often used by developers who plan to sell or rent out the completed project.
We work with clients throughout the UK to arrange development finance solutions that meet their project needs, including for non-standard construction projects.
Property development finance is a type of funding that is specifically designed to help property developers fund the construction or renovation of a property project. Here's how it works:
1) Application: Property developers apply for finance from a lender, such as a bank or specialized finance company. The lender will assess the application and decide whether to approve the funding.
2) Valuation: The lender will then conduct a valuation of the property project to determine its potential value and the level of risk involved in financing it.
3) Loan structure: The lender will structure the loan based on the specific needs of the property project. The loan may be provided in stages, with each stage being released as the project progresses.
4) Interest rates: The lender will charge interest on the loan, which may be fixed or variable. The interest rate will be based on the level of risk involved in financing the project.
5) Repayment: The property developer will be required to repay the loan over an agreed period, which may be several years. The repayment schedule will be based on the cash flow projections of the property project.
6) Security: The lender will require security for the loan, which may be in the form of a charge over the property project or other assets owned by the property developer.
Overall, property development finance works by providing funding to property developers to help them construct or renovate a property project. The finance is provided by a lender, who will assess the application, conduct a valuation, structure the loan, charge interest, require repayment, and require security.