Whether you are thinking about property development for the first time or you are an experienced developer looking for some new ideas, the financial basics are always the same. To make a profit the developer must:

1. Understand all the costs involved in both the acquisition and build phases,
2. Accurately assess the potential sales price and
3. Manage the finances to project completion

Serial developers can fund a project using proceeds from the previous development. But even that requires skill, in order to tie buying and selling timetables together. For most developers, especially newcomers to the business, raising money is an essential part of the process, and one that will do much to affect eventual profits.

Developers' sources of funding usually fall into two categories: private and commercial. The cheapest way to raise funds is always to use savings, as the rates earned on even a high interest savings account will be less than the interest charged on a mortgage or other loan. But the high cost of buying a property to refurbish means that few developers can afford to fund an entire project from cash.

Rising property prices have, until recently, opened up another financing option: remortgaging. Any homeowners who have built up substantial equity through house price inflation in the last few years might be able to take advantage of this. A larger mortgage lets homeowners release that equity for other purposes, including financing a second property. Remortgaging has the added advantage of raising finance at low, residential mortgage rates. However, with house prices on the slide this remains a highly risky option.

Talk to our specialist team about how we can help your business for every aspect of development finance that's available. From High Street development loans to specialist merchant lenders offering high loan to values or mezzanine lenders offering top-up money, we can also arrange pre-planning finance to take advantage of land buying opportunities.

Property Development Finance and Commercial Investment Mortgages

What can we do for you?

1). We arrange commercial mortgages and finance secured on residential and commercial properties.

2). We can arrange investment property finance of up to 95% loan to value.

3). We can arrange purchase and re-finance on owner occupied business premises up to 85%.

4). We have access to lenders who specialise in development finance and will consider lending 100% of the total property development costs

5)We have access to mezzanine finance for property development finance if required.

6) We have lenders who will accept 100% of rental income on buy to let properties.

7). We have access to lenders for large size commercial investment mortgages and overseas developments. (Details upon request)

8). We can arrange bridging finance up to 85% loan to value.

9). We can arrange for a lender to give an undertaking to your supplier which can result in you obtaining better terms than you would have obtained from your supplier. This is known as Trade Finance.

10). We can arrange Venture Capital.
11). We can arrange Letters of Credit.

12). We arrange leasing of equipment which could be used as an effective way of purchasing businesses, plus enabling you to borrow a higher percentage of the purchase price.

13). If you cannot see what you require in terms of commercial mortgages or property finance get in touch, we can probably arrange it!

The Development Finance Bank can arrange residential and commercial developing funding for every type of developer so regardless of your experience we can help however for experienced developers with a proven track record we can offer market beating products.

At The Development Finance Bank we work with High Street Lenders who will lend 75% of the property purchase price and building costs, leaving you to finance the difference, they are some of the most forward thinking High Street lenders in the market. If your development requires higher loan to values then this is where The Development Finance Bank can make a big difference as we also work with specialist lenders to arrange finance higher than the average deal on the High Street, in some cases going as high as 90% of cost.

Experienced Developers - Enhanced Residential Development Product

· £2m – £50m

· Housing projects in England, Scotland and Wales

· Most borrower types considered e.g. corporate, onshore/offshore

· Maximum term 3 years

· 75% of the GDV up to a maximum 90 – 95% of the loan to cost

· Lending above 75% LTC subject to enhanced returns e.g exit fee linked to schemeprofitability (% GDV)

New Developers or without track record

· £200k – £5m

· Housing projects in England, Scotland and Wales

· Most borrower types considered e.g corporates, onshore/offshore

· Maximum term 3 years

· 60% of the GDV

· Lending above 60% GDV subject to enhanced returns e.g exit fee linked to scheme profitability (% GDV)

To help us to give you a quick response to your enquiry the following information would be useful, however if you are just in planning stages feel free to call us to talk through your project;

· Location plans

· Proposed site layout

· Proposed house types

· Planning Conditions & copy of planning consent

· Sales agent's report of recommended selling prices or comparable properties

· Development appraisal

· Cost analysis/ breakdown

· Cash flow projections

· Confirmation of existing services

· A brief background to your experience

All information will be treated in a strictly confidential manner.