Development Finance London UK

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Development Finance Options

The economy is certainly better today than it was several years ago. The job market has stabilised, downward pressure on wage
is has eased and property values have been on the rise in most major markets. However, there is no question the economic
environment is still much different than it was before the financial collapse of 2008-2009.

While the property market has experienced positive growth in recent years, financing remains constricted in many areas. Investors
and individuals looking to purchase property still need viable development finance options, especially when they already own
property but would like to move forward with a purchase before selling the property they already own.

Bridge financing is certainly not a long-term option that you want to use as a 10 or 20 year solution but it can offer you a path that
allows you access to the funding needed for a purchase and ultimately the time to secure longer-term financing. The terms are
flexible and rates are very competitive with other financing options. Bridge loans offer buyers the chance to move forward with future
plans and not get delayed simply because they are waiting for another transaction to take place in the near future.

If you have had trouble finding development finance that meets your needs and are interested in working with bridge financing
experts then please contact us. We offer a wide range of options and always customise loans based on our clients individual needs.

Below is example from just one lender. Contact us for specific terms for yourselves. Loans over 4m rates of under 5% P.A available.

PPLTGDVMin LoanLTCArrange FeeInt P.AExit
70%60%£3m80%1%6.5%1.5%
70%65%£2m80%1.25%8.0%2.%
70%70%£1m85%1.5%10%1.25%

Bridging Loans UK Can Be Fast for Development Finance

Bridging loans solve this problem by providing short-term funding to the buyer for the transaction at hand while waiting on the funds from another transaction. The approval process can be very quick and terms can be customised to fit a wide range of circumstances. Of course, this is provided you deal with a finance company that is knowledgeable and monitors the bridge loan market daily.

Here are a few steps you can take to ensure a quick and easy bridge loan process:

  • Choose a finance company that is an expert in the bridge loan market.
  • Be honest and upfront with your loan consultant so they can tailor a solution that will be the right fit.
  • Verify your chosen finance company has more than 3 or 4 lender options available.
  • Be prepared to make a commitment and move forward, a good finance company can arrange bridging loans within a day or two in some cases.
  • If you have an important real estate transaction pending and you need to arrange short-term funding, don’t settle for dealing with a company that is less than an expert in the market. Choosing the right provider can save you time, money, and many headaches.

Let’s talk about how we can help you…

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Development Finance

Development finance is usually a type of short-term loan that allows property investors and developers to purchase or develop commercial or residential properties. Bridging finance is majorly divided in two main categories: heavy renovations of existing properties and constructing the new property. Whether you are a landlord, property developer or investor looking to raise funds for the property deal, BridgingFinance4U has the right property development finance option available for you in London, Glasgow, Wales, Scotland and other areas of the UK inc Northern Ireland.

Difference Between Bridging Loan and Development Finance

The term development finance is often used interchangeably with bridging loan, but development finance has its own specific meaning. While the bridging loan is said to be a loan that bridges the gap between the pending dues and the funds being available, development finance for property is more of a staged loan. The money in development finance is released after the completion of each stage of the property development. Another key difference between bridging loan and development finance is that the amount of funds arranged in development finance is much larger and for a longer time period than bridging loan.

What Type of Development Finance Do We Offer?

Development finance can be used for a variety of purposes, but the understanding of what suits the best come from understanding what type of project you are willing to undertake.

New Property Development: When you are looking to develop a property from the scratch, you may require development finance. Development finance can be made bespoke to match your requirements and then the funds are offered based on the cost of development. Being a leading development finance broker in the UK, BridgingFinance4U provides a vast array of property finance solutions through numerous funding partners across the nation.

Major Property Renovation: You may own a property that requires major restoration work which hasn’t been looked after for a long time. The development finance today can help you undertake a range of refurbishment tasks, such as converting apartments into office blocks or vice versa, convert flats into penthouse and more.

Short-term Restoration Property: Sometimes short-term bridging loans are required to repair the property and then sell it to repay the development finance.

In all the situations, BridgingFinance4U makes sure you have the property development funds available to you whenever you need them.

How Much Can You Borrow?

How much you can borrow development finance depends on several factors, such as your liabilities, the value of securities, the duration for which you need finance and your past record of successful development projects. You can use our free development finance calculator to get an approximate rate.

#1 The initial funding will be processed based on the current value of your site.

#2 At last, the lender will agree to release a certain amount of funds of the total build cost, which is known as Loan to Cost (LTC).

#3 Then, development finance lender will consider the total borrowing fund against the gross value after the project is completed, which is known as Loan to Gross Development Value (LTGDV).