Development of 213 apartments
- Location: Worcester
- Senior debt facility
- GDV £55m
Phase 1 of a major city centre regeneration project.
The UK construction/development market is saturated with lending options offering the World, making it difficult to narrow down your options.
There has never been more pressure on cashflow than there is now, as construction companies face substantial issues such as growing costs of raw materials, supply chain obstructions producing shortages, and a lack of competent personnel.
Because of these difficulties, many conventional financiers are unable to provide sufficient assistance to the industry. As a result of this rigid policy, many construction companies lack the capital they need to operate profitably.
In contrast, our perspective is unique. We are proud to have helped commercial and residential construction companies succeed in completing projects and confidently take on new contracts with the support of us and our access to capital that improves your ability to manage cashflow.
We offer no obligation, face-to-face conversations to truly understand your financial position & your funding requirements. We ensure before pitching you to our group of investors we know exactly what you are looking for, finding you the very best options.
We have access to over 150 years of experience in the property finance industry & boast over 300 lenders from whom you can make selections and receive advice.
To ensure that you/your project receives the most favourable consideration possible from potential funders, we will create a pictorial, professional presentation. This streamlines the application process, allowing you to access competitive options for your finance needs in less time.
A key facet is our ability to work with you, facilitate the structure of the project and ascertain the right funding for your specific circumstances.
We can arrange funding for:
We operate in the following commercial sectors:
Obligation, face-to-face conversations to truly understand your financial position & your funding requirements. We ensure:
Access to an extensive network of all types of property finance providers.
A thorough and professional appraisal of your business needs.
The preparation of presentation material for submission to funders.
In-depth insight into the complexities to the property finance market.
Comprehensive guidance throughout the entire process.
A bespoke service with a fee payable only on success.
Property development finance is a short-term funding option, usually between 6- 24 months.
Property development finance is a short-term funding option, usually between 6- 24 months. It is designed specially to assist with the purchase and build costs associated with a residential or commercial development project.
The amount of funding that can be provided will be determined by a professional valuation report which gives key factors: Current value, build costs and GDV. Each lender has their own parameters.
Typically, development finance will provide 65%-70% loan to value, 85% loan to cost.
We source funding for a variety of developments for both residential and commercial uses, both large and small projects and work with a large panel of funders providing a variety of different lending solutions. Recognising that every development is different we provide a bespoke funding package to suit each project.
This is the most common type of development finance, senior debt finance is a first charge development fiancé loan.
This is the most common type of development finance, senior debt finance is a first charge development fiancé loan. These loans typically cover most of the funding needed to complete a development project and allow for work to begin. Senior debt can be a combination of claiming back on the loan purchase and build costs.
Often, developers may not have the full amount of capital required for their development projects. Senior debt essentially serves as a loan borrowed by developers to fund their projects. Even if a developer has enough cash in hand, using debt can allow the developer to commit to more projects simultaneously by deploying less of their own money in each project. It also allows them to opt for larger-scale projects and generally improve return on equity. 'Senior' means that the debt holder is first in line to claim the repayment and interest from whatever money is left over after all the costs and expenses. As the senior debt holder has the first position claim, such investment is considered relatively low risk. Hence, the interest rate required by the lender is often the lowest compared to other financing methods, making it one of the cheapest forms of development finance.
Stretch Senior Debt refers to a first charge development loan that provides a higher Loan to Cost percentage than a typical Senior Debt facility can allow.
Stretch Senior Debt refers to a first charge development loan that provides a higher Loan to Cost percentage than a typical Senior Debt facility can allow, but this will come at ahigher cost than senior debt.
With a stretched senior loan, you only have to deal with a single lender, and this streamlines the process. This creates speed and convenience throughout the process, saving time and the cost of legal fees.
Using stretch senior debt is an alternative to using “structured” funding packages like Senior Debt and Mezzanine Finance.
Mezzanine property development finance is used to help bridge the gap between a development facility (Senior debt) or loan and the amount of equity or funds that a developer has to invest in the development.
Mezzanine property development finance is used to help bridge the gap between a development facility (Senior debt) or loan and the amount of equity or funds that a developer has to invest in the development. This is a form of second-charge debt most commonly used by developers and housebuilders to provide top-up funds for a project they need more capital for. This is a short-term form of borrowing, and most lenders/investors will expect the debt to be settled within 12-24 months.
This type of facility is more expensive than securing ordinary senior debt and even more expensive than stretched senior debt.
Development exit finance is used to settle any remaining loans on developments that are nearing completion of have completed.
Development exit finance is used to settle any remaining loans on developments that are nearing completion of have completed. It proves invaluable in managing the challenges posed by sales deadlines, limiting expenses, and freeing up additional capital well ahead of time.
This type of loan is typically a short-term, specialised bridging solution which provides a more favourable interest rate compared to the existing development loan for the project.
A refurbishment loan is available to property investors, landlords and developers looking to upgrade their investment.
A refurbishment loan is available to property investors, landlords and developers looking to upgrade their residential, commercial or mixed-use investment asset without planning permission before renting it out or selling it at a higher value.
Light refurbishments are strictly cosmetic changes to the property while heavy refurbishments include a greater scope of work, including removing walls.
You can take out a residential bridging loan for as short as one month to as long as one or two years.
You can take out a residential bridging loan for as short as one month to as long as one or two years. You can usually borrow up to 75% of the property's value (known as loan-tovalue), or possibly more if you have additional assets to use as security. The lower the LTV, the lower the interest rate you'll usually pay. Rates can be fixed or variable.
There are a number of reasons why you might want to take out a residential bridging loan, including:
Residential bridging loans can be useful for a range of purposes if you have no other option, but make sure you have a solid exit strategy in place. Speak to us to get the best deal.
Commercial bridging loans are, as their name suggests, bridging loans which are secured against commercial property.
Commercial bridging loans are, as their name suggests, bridging loans which are secured against commercial property. They are used to secure funds quickly to fund commercial property purchases or release funds from a commercial property.
They are used when funding is needed to secure a commercial property, often in situations where a commercial mortgage wouldn't be appropriate. This is usually either related to how quickly the funds are needed, or because a commercial mortgage wouldn't be available in current circumstances.
Auction purchases generally have to be completed within 28 days of the auction, and in most cases, a conventional mortgage either cannot be arranged (if the property is not habitable) or will not be available within that time period.
A Land Bridging Loan is a short-term loan secured against a piece of land, which typically will not have any buildings/structures standing on it. The land could have previously been used for agriculture, storage, garages, equestrian use or it could even be “scrub” land with development potential. Regardless of what the past or current use is/was, everything has value.
Auction Finance is a form of bridging finance used for buying property at auction and specifically to complete a transaction quickly.
Such loans are typically used by property investors, speculators and property developers to purchase land and either apply for a change of use, or amend the existing planning to enhance it or make it more favourable to then sell the land, or move on to development finance and build out the project.
It's named “mezzanine” because it fills the middle layer in the capital structure, much like a mezzanine level in a building that sits between the ground floor and the upper floor.
Sometimes referred to as second mortgages they have secondary priority behind your main (or first charge) mortgage and are often taken out to raise additional funds.
As well as the borrowers' own equity, sometimes third party equity is needed, from an Equity Investor, particularly if the borrower does not have enough to make the finance package work. Equity Investment is often invested into a project in return for part ownership of that project.
This could be shares in the company or a profit share with a priority return on the funds invested. Equity Investment therefore allows the Developer to “unlock” development finance for the project.
Commercial mortgages are used for buying (or refinancing) any land, or property for deemed to be commercial, or non residential. This includes business premises or commercial Buy-to-Let /investment properties.
Examples are:
We are able to source funding on trading property assets with interest-only and full or part repayment options available.
If you're looking for funding for a new property project - either for a residential or commercial development - but don't have any money up front, you're probably wondering if you can get development finance without the need for a deposit.
While it's definitely not easy, it can be possible to get 100% development finance in the right circumstances and with the help of a specialist in this field.
Maybe you're a project manager that manages developments for others, or a builder that builds for others.
You've seen a site and you have so much experience that you could build the scheme blindfolded, but for whatever reason you don't have the deposit to go it alone.
The good news is that there are lenders out there that will lend you the money to buy the site, pay the stamp duty and lend you 100% of the build cost. In 18 months from now you could be calling yourself a Property Developer!
Through our funding partner & trusted funding expert Derek Bradshaw, we can consider joint ventures. A joint venture (JV) is a business arrangement in which two or more parties enter into a contractual agreement to pool their resource for the purpose of accomplishing a deal.
Typically in development finance the landowner and builder/developer are in partnership with a profit share agreement in place.
This is typically for landlords who want to buy property to rent. The rules around buy-to-let mortgages differ from those around regular residential mortgages. A BTL can also be used to refinance your property portfolio, holiday homes, and multiple Unit Freehold blocks. Developers also use this option as a sales/exit strategy to allow them to retain assets.
A House in Multiple Occupation (HMO) mortgage is a loan related to a property that is occupied by multiple residents/tenants. Designed for multi-let properties, the terms and conditions of an HMO mortgage permits the letting of a purchased property under multiple tenancies.
HMO properties require a licence to be obtained from the local council, which is subject to an inspection and must be renewed every 5 years.
SA multi-unit freehold block, also known as a MUFB, is separate, independent, or multiple residential units held within one title.
A multi-unit freehold block, also known as a MUFB, is separate, independent, or multiple residential units held within one title. Therefore, no single unit is subject to a lease. Common examples include houses that have gotten converted into a block of flats or purpose-built flats.
A holiday let mortgage is a loan specifically designed for properties let out as holiday accommodation.
As holiday homes are let on a short-term basis, you can't buy a holiday home using a buy-to-let mortgage as these assume that the property is let using an assured shortholdtenancy of at least six months to a year.
And although you may be able to make more money overall with a holiday home, the income fluctuates. This means the rental income you'll get, which is needed to work out how much you can borrow, is worked out differently.
You can't use a residential mortgage to buy a holiday let either, as these don't usually allow you to let the property.
Holiday let mortgages are for properties in the UK. To buy a property abroad, you'll need an overseas mortgage.
Instantly get quotes from 144+ High Street lenders & private investors.
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Complete our easy to use online quotation portal, your proposed development is instantly compared by 144+ lenders. Commercial & Private.
Step 2
Choose to proceed with up to 5 lenders of your choice. We are with you every step of the way.
Step 3
Complete all the paperwork online. For convenience, electronically sign your agreement.
Phase 1 of a major city centre regeneration project.
A development of 3 luxurious family homes consisting of 2 new build barn style houses and a farmhouse style house.
The development of a high-quality design apartment block delivering a range of 2 and 3 bedroom flats with associated.
This was a joint venture collaboration between the landowner and an experienced residential developer.
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