Development Finance | Property Development Finance | Finance for Property Project

Development Finance

Development Finance 750 400 Lorna Slee

Development finance provides a cash boost in the form of funding, which can be used to assist with construction related projects for both commercial and residential properties. Finance is available in the form of both loans and mortgages.

This type of funding solution enables a lender to loan money for a business or entrepreneur to purchase a property or construction site and then undertake the necessary building work. Development finance is different to a traditional business loan as it takes into consideration the total value of the property or properties. The key benefit is that the property developer can secure a much higher level of funding due to the high level of returns available.

Anybody looking to apply for development finance will often be expected to have a strong and professional collaboration team which includes structural engineers, a planning consultant and an architect. Being able to present a team of professionals will show credibility to the lender. Alongside this there are other key elements which a funder will ask for:

  • Overview of cashflow
  • Detailed schedule of works
  • Proof of planning approval

Often the application process for development finance can be extensive and time-consuming. This is when the use of a broker can be beneficial as they can facilitate the entire application. They will know what due diligence is needed and can adapt the application to suit the specific requirements of each lender.

The NGI team have an experienced development finance team. In recent months we have worked with a developer who was struggling to complete a build due to a lack of funding. Working alongside the developer we helped them secure funding to complete the construction of 2 properties worth £1million. The key to this was speed, a deal was secured within 4-weeks of the initial enquiry. An additional project that was recently completed was the build of a new GP Practice worth £4 million. Having already established 1 successful GP surgery, the NGI team were delighted to assist with securing funding for a second surgery in a new location.

Another key service the NGI team can provide is a Developer Exit Product. When a developer is close to the completion of one site and needs to start a second project then our exit product can provide the finance to start on the new project whilst the sale of the first is still in progress. Using the asset of the current property stock to finance the development of new stock is a perfect solution for property developers.

If you would like to find out a little more about any area of development finance, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.

We can provide you with tailored business finance solutions.

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