Commercial Property Finance

UK Property Finance are experts in the field of commercial property finance, with access to specialist lenders across the UK. We strive to source the best possible rates for our clients looking to develop commercial property and land.

How is a commercial property development deal structured?

In a typical development deal, there will be an initial drawdown of funds to allow the purchase of the land or property, followed by a series of additional pre-agreed drawdowns as the development progresses.

While every deal is tailored specifically to meet your individual requirements, we will usually look to secure the following:

• 65/70% loan against the purchase price (100% if additional security is available)
• 100% of the build costs
• Interest Rates from 3.5% Plus Base Rate p.a.

**Build costs are paid in arrears, so you will need to be able to fund the initial build costs yourself. The lender will then provide funding once the project has started.

** If you already own the land or property, then we will be able to provide 100% of your build costs, which will include a drawdown on Day 1 (based upon the current value of the land you already own); therefore, you may not need to provide additional funds.

Pre-lets/pre-sales

Lenders generally view commercial developments as more risky than residential, purely due to the specialist nature of this type of project. For this reason, some lenders may require the reassurance of the units being pre-let or pre-sold before any drawdown of funds is approved.

However, if the lender can see that there is good demand for the properties, then they may be willing to proceed without pre-letting or pre-sales.

Our team at UK Property Finance has extensive knowledge of the commercial property market and will be able to advise you on the best way to structure a deal and which lenders to approach.

How much will the overall cost of the commercial property development finance be?

We have created our very own calculator, which enables you to input the specific terms of your deal and see exactly how much your finance package will cost and how much profit you could potentially make. Our calculator can be found on our website, so go ahead and see what costs and profits your commercial property development project could yield. If you need any help, then please don’t hesitate to give us a call.

How do commercial property development deals work?

• Initially, we will need to assess what the project costs will be and collect any paperwork that will be required by the lenders, such as planning permissions, plans and drawings, evidence of experience (CV), a development schedule, and total build costs.
• After advanced discussions, we will use our expertise to guide you and formulate the best path to follow to achieve your end goals.
• Once we have agreed on the funding requirements you need, we will then do a search to match you with the right funding product and lender. As a whole-of-market broker, we will be able to source the best rates and fees for you. However, it is imperative that you consider the overall package and not just the cost, as sometimes the cheapest deal is not necessarily the best option.
• When the best deal has been agreed upon, we will liaise with the lender and ensure that they have all the documents they require, as well as deal with any legal aspects on your behalf, including any transactions, solicitors, valuers, environmental specialists, etc.
• When all the legal aspects have been covered and the development deal is moving towards completion, we will ensure that all parties are fully aware of the structure of the package and all the requirements.
• We will be on hand for the initial drawdown, whether it be for the build or the purchase of the land, and ensure everything is in place for the commencement of your commercial property project.
• Throughout the project, we will be there whenever you need us to advise you and ensure the financial package runs as expected. We are well-equipped and have all the necessary experience to deal with any issues that may arise.
• Once your commercial development has been successfully completed, we will be more than happy to assist you with funding for your next project.

Commercial funding uses

With full market coverage, we can arrange funding for commercial developments, including:

• Retail
• Industrial units
• Factory premises
• Office blocks
• Limited Companies
• LLPs
• Sole traders
• Partnerships
• First-time developers
• Experienced operators