1) What type of developments are considered acceptable for development finance?
The following developments are all acceptable:
- Housing developments
- Restoration projects
- Apartments and flats
- Retail units
- Part completed developments
- Commercial developments
- Holiday accommodation
- Fitness Centres
Please note that this is not an exhaustive list.
2) How much can I borrow?
We can offer you development finance from £50,000 with no maximum limit. Cases are considered on a case by case basis. But we can lend up to 75% of the Gross development value and 90% of the total costs. In some cases, where additional security is provided we can offer 100%
3) What are the interest rate charges that will apply?
This will depend on many factors including the type of development you want finance on and the lender’s criteria, but we can secure rates starting from 4.5 %. Finbud will do the work for you to ensure you obtain a cost efficient deal that best matches your needs and aim to present you with terms within 2 hours.
4) I’m happy with the lender proposed to me and it meets my requirements, how soon will I be able to obtain the finance?
This will very much depend on the lender chosen, but we endeavour to factor in your completion schedule prior to issuing terms. Lenders are typically able to complete within 2-8 weeks, depending on the lender chosen.
5) Do I have to make payments during the term of the loan?
Not really unless you choose to do so. There are no monthly payments and the interest is rolled onto the loan amount and payable at the end.
6) Can you arrange finance for land that does not benefit from planning permission?
There are lenders who will be prepared to fund this allowing you time to obtain planning permission. But please note that lenders will be wary of lending a huge amount against the value of the land. We could look to obtain a loan for 50% of the value of the land. This may increase depending on whether there is an existing property on the site. Once planning permission is granted Finbud can help you raise further finance against the increased value of the land. Which will in turn help your build costs.
7) Can funding be arranged for first time developers?
Many lenders will support this and using our expertise and connections we will ensure that we speak to those straight away. The lender may wish to ask further questions and will want to see that you have an experienced team around you. They may also require a fixed term contract from a reputable builder to ensure that there are no cost over runs.
8) What about finance for Limited Companies/Partnerships?
This is also possible. However, for a limited company the lender will require Personal guarantees from the Directors.
9) I have a poor credit report –will that effect my chances at obtaining funding?
Lenders will usually look at the property development project and experience of the development team above credit reports. However, the reasons for the poor credit reports can put lenders off which can result in funding not being made available to you. Finbud will do its best to help you in such cases.