Next in our series on property finance, everything you need to know about development loans. Read on to learn more about the process of financing a development project.
- Development loans are issued to cover the costs of developing or renovating a property.
- The loan provider will advance a certain percentage of the Gross Development Value of a property – a rough calculation of how much the property will be worth once development has finished.
- The only essential requirements for obtaining a development loan are a knowledge of the development process, the necessary planning permissions, and an exit strategy for when the work is finished – selling or refinancing, for example.
- Unlike other forms of property finance like commercial mortgages, development loans are short-term, typically lasting up to twelve months.
Rangewell has extensive knowledge of the SME financing field. We’ve independently mapped the business finance market of thousands of loan products from over 200 business lenders, so we can offer SMEs and professional advisors access to multiple sources of development loans, as well as a wide range of other funding options. If you need business finance, Rangewell can connect you with the best sources. Click the button below to find out more.