Residential Property Finance
For developers and investors embarking on their first single property or multi-property development project, here at UK Property Finance Ltd, we have the experience to find you the perfect residential property finance deal for your scheme.
Our team will assist you in creating a comprehensive finance plan which will cover all eventualities and match you with the most suitable lender for your requirements. The advantages of having the right property development lender by your side from day one are endless. We will ensure you have the tools to make sure your scheme runs smoothly and help you to avoid potential issues further down the line. We have a second to none track record in finding the perfect development finance partner for all of our clients.
UK Property Finance Ltd cover the whole of the market, from High Street Banks to niche development finance funders, we guarantee to get the most suitable funding package for you.
How are Residential Property Development Deals Structured?
For most development deals there will be an initial drawdown of funds to allow the purchase of the land/property and then a series of additional drawdowns as the development progresses.
Whilst every deal is different, we can look to secure the following:
- 75% loan against the purchase price (100% if additional security is available)
- 100% of build costs**
- Interest Rates from 3.5% Plus Base Rate p.a.
** Please note – build costs are paid in arrears so you will need to be able to fund the initial build costs from your own resources – the lender will then provide funding once the build has commenced
** If, however, you already own the land/property then we will be able to provide 100% of your build costs which will include a drawdown on Day 1 (based upon the value of the land you already own) and so it is very likely that you will not need to provide additional funds.
How much will the overall cost of the property development finance be?
To calculate the potential cost of your property development we have created a calculator which enables you to input the specifics of your project and see exactly how much the finance package will cost, and how much profit you could potentially make. Our calculator can be found on the Home page for your convenience. If you require any help using our calculator don’t hesitate to give us a call.
How do residential property development deals work?
- Your requirements will initially be assessed. We will then collect the relevant paperwork (including planning permission, drawings/plans, CV to demonstrate experience, build cost schedule etc)
- We then discuss your requirements and make any necessary adjustments
- After assessing your funding requirements we will get to work! Using our vast range of funding options we will find the most appropriate finance package for you, with the most competitive rates/fees, and report back with our recommendations. It is important to look at the overall package on offer, as the cheapest option is not always the best one.
- Once you are happy to proceed we will work with you to provide the lender with any additional documents they may need and liaise with all the professionals involved, including solicitors, valuers, surveyors, environmental specialists etc. One of our major strengths is that we know how to deal with these professionals in order to get through the issues which will invariably arise, ensuring matters are dealt with in a speedy manner.
- As the legal process moves towards completion, we will maintain contact with the lender to ensure that on the day of completion everyone is clear on the structure of the financial package and fully understands how the deal will work. In our experience there are often issues which arise during the valuation/legal process and we will assist you in overcoming any obstacles.
- Once the initial drawdown takes place (either for purchase of the land or initial build costs) we are on hand to ensure everything is in place and your project can commence.
- Throughout the project we will always be available to advise you and ensure the finance package runs as expected. Whatever issues you may encounter, we have most likely seen them before!
- Once you have completed your development project we will be delighted to look at funding your next venture.