Property Development Finance

A deeper dive into uk-property-development-finance.com

Common questions asked about uk-property-development-finance.com

1. What is the process for obtaining a property development loan?

To obtain a property development loan, you need to provide information about your property, including the date of original purchase, original purchase price, and land costs to date. You also need to specify if you have a mortgage and provide details such as the current balance and lender name. Additionally, you will need to provide information about the build cost, contingency, gross internal area, and professional costs and charges. Finally, you need to specify the total GDV (Gross Development Value), build term, loan term, and the maximum loan required.

2. What costs are involved in property development?

Property development involves various costs, including stamp duty, legal costs, surveys, planning costs, mortgage interest, site security, and project security/running costs. The costs can vary depending on factors such as the type of property (new build, conversion, permitted development, refurbishment, or end property) and the size of the development.

3. How is the build cost calculated?

The build cost is calculated based on the gross internal area (sq.ft or sq.m) of the property. It includes the cost of construction materials, labor, and any additional expenses related to the building process. A contingency of at least 7.5% is also added to the build cost to account for unforeseen expenses or changes during the construction phase.

4. What is the loan term and how does it relate to the build term?

The loan term refers to the duration of the loan agreement, while the build term refers to the estimated time it will take to complete the construction of the property. The loan term must always be longer than the build term to ensure that there is enough time to complete the project and repay the loan. It is important to consider both terms when planning for property development financing.

5. How much loan can I qualify for?

The maximum loan you can qualify for is determined by factors such as the total GDV (Gross Development Value) of the property and the net loan required. The GDV is the estimated value of the property once it is completed and ready for sale or rental. The net loan required is the amount of money you need to borrow after considering any existing mortgages or financing. The loan amount will also depend on the lender's criteria and your financial situation.

Some reasons to choose uk-property-development-finance.com

Instant Property Development Loan Quote

The company offers an instant quote for property development loans, allowing customers to quickly and easily determine their financing options.

Wide Range of Property Types

The company caters to various property types, including new builds, multi-unit freehold blocks, barn conversions, care homes, and airspace development. This ensures that customers can find financing solutions for their specific property projects.

Expertise in Affordable Housing

The company recognizes the increasing demand for affordable housing and has expertise in financing projects in this sector. This is particularly important considering the challenging housing market and the government's housing targets falling short.

Flexible Loan Terms

The company offers flexible loan terms, allowing customers to choose a build term and loan term that best suits their needs. The loan term must always be longer than the build term, providing customers with the necessary time to complete their property development projects.

Quick and Easy Application Process

The company provides tips on how to present a property development finance application, making the application process quick and easy for customers. This helps streamline the financing process and ensures a smooth experience for customers.