The market for development finance is becoming more competitive with new products and new lenders appearing regularly. This means there is more choice but you need to be able to access and assess these options quickly to ensure you get the best deal possible.
We are currently working on a development finance tool to allow you to search, compare and apply directly to a wide range of lenders but in the meantime please find outlined below a range of available products.
If any of these products are of interest then we can help you secure terms quickly.
Prime money for developers with cash to contribute to a new project or for sites that are already owned.
A high Loan to Cost (LTC) product that reduces the cash contribution needed from the developer.
Used to top up a senior debt facility so cash input is minimised, or used to avoid a joint venture profit share.
An investor provides all of the capital required for the developer to complete the project. Most JV’s work on a 50/50 profit share between the lender and the developer plus an annual interest rate.
A lender who pools a number of retail investors in to one single loan.
New entrants from the UK and overseas looking to fill the gap left by the retail banks.
Similar in style to the private debt funds but usually individuals interested in loans below £5m.
High LTV/LTC single strip covenant light loans from aggressive investment banks seeking defined returns.
To help win the construction contact a builder will provide 100% of the development finance facility, some will also fund 100% fund the purchase of the land/building.
Not a traditional lending model but instead they load the construction profit margin and might charge an annual rolled-up interest rate.
A way to quickly secure funds in 1-3 weeks from a lender that takes greater risk than a prime lender for a greater return.
Here is a guide to what lenders expect from a borrower, not all will apply to every case.
The range of products and also jargon has increased due to renewed competition and the creative solutions now available. Please contact us for access to the lenders above or for a discussion on how we can help you through the process.