What is mixed use & residential Development finance?
Residential development funding is a sort of financing used to fund the construction or conversion of a home into residential units. It may be used to finance projects from 1 unit to large projects that consist of hundreds or even thousands of units
Funding prices may fluctuate widely between growth finance creditors. The cost of funding can vary depending on the development lender. Therefore, choosing the wrong lender can have a significant impact on your profit margin and greatly impact the sustainability of a strategy.
We provide financing from development lenders across the whole market and operate on your behalf to ensure you get best possible rates for your project.
Below are the key criteria points for residential development finance:
- 1. Funding From £50,000 with no upper limit
- 2. Funding available throughout the UK
- 3. Borrow up to 75% loan to GDV
- 4. Rates starting from 4.5% per annum
- 5. Funding available for first time developers and experienced developers
- 6. Terms from 1 to 36 months
- 7. Monthly interest payments can be rolled onto loan
- 8. Adverse credit maybe considered
Mixed use properties
Mixed use properties comprise of both residential and commercial components, frequently favouring the residential side. An example would be a block of 18 flats with 3 retail units on the ground floor.
Funding mixed use projects is similar to a 100% residential scheme, although the commercial part of it will be heavily scrutinised. Some lenders may also insist on a pre-sale or pre-let arrangements on the commercial units.
How much does it cost?
We provide financing for residential property development starting from rates as low as 4.5% per annum. Normally, interest rates will be lower for larger projects that carry less risk. A lower loan to GDV will help you obtain a better rate as well.
We source the entire development finance marketplace to guarantee the lowest prices for every single application that we work on. As loans are usually priced separately, it can be difficult to predict the rate for your chosen development project. We can usually look to offer you complete, lender terms in just 2 hours of your first enquiry.
How much can I borrow?
We provide financing from £50,000, without a maximum limit.
Generally speaking, obtaining development finance will depend very much on the strength of the application, with the interest normally being rolled onto the loan
As the interest is usually rolled onto the loan, there will be less affordability restrictions. Therefore, the maximum loan is usually based on the lenders maximum loan to GDV.
How long does it take to complete the process?
It usually takes about 6 weeks to complete a development finance application, although we can help to speed up the process for urgent applications.
We recommend you apply for funding as early as possible, to leave you enough time for completion. Some lenders have a tendency to operate much faster than many others. By working to a tight deadline, you may end up not being able to work with certain lenders, as a result of the time that it takes for them to complete. This in turn could adversely affect what rates are available to you.