Property Development Finance: funding scaled for your business plans

Property Development lending is designed to provide the scale of funding you need - and help you access it fast.

It ranges from small-scale funding for individual domestic refurbishments to complex finance for major mixed-use developments providing multiple new homes, and may be available whether you are a sole trader, limited company or LLP. Property development finance includes a wide range of solutions.

Redevelopment Mortgages

Redevelopment Mortgages may be available for homes that are basically habitable, but may require extensive modernisation.

Refurbishment Bridges

For light and heavy refurbishments, you might want a 'Refurbishment Bridge’ finance option, which funds 6–24 months of building costs and may include the option to convert into a mortgage once work is complete and signed off.

Property Development Loans

Property Development Loans are a type of short-term lending to finance renovation or refurbishment of a property. It can cover three types of projects.

These are:

• Small-scale loans to cover light refurbishment
• Lending to cover renovation and major conversion projects
• Funding for ground-up development, starting with an empty plot of land

50 – 60% of the site/property value can be advanced with additional stage payments available throughout the build at intervals agreed at the offer stage. Loan terms are flexible from 1 – 12 months, and arrangements with no monthly interest payments may be available.

Loans are also available to fund up to 100% of the development costs.

Major development funding

For more extensive projects and ground-up developments, you may need a more complex finance arrangement.

Funding is often sought by those who already own land, and who will offer it as security to raise funds to cover both land purchase and building costs.

However, experienced developers may be able to secure partial funding for the purchase of land as well as development costs.

Lenders can provide up to 60% of the Gross Development Value or GDV.

Lenders may expect at least 40% equity of the GDV to be funded by the client with the acquisition of the site. Funding will then be provided on a phased basis to cover the costs of development or redevelopment. Very large multi-unit block developments may require pre-sale of each phase before funding can progress to the next stage of the project.

Lending arrangements can include a roll-up of interest and associated costs into the loan, which would be paid off once the development is sold.

Why you need Rangewell to find finance scaled for your projects

Not all types of deals may be suitable for all circumstances, or for all prospects.

Knowing the most suitable types of funding can mean saving valuable time as well as reducing costs. At Rangewell, we work across the property development sector, and can work with you to understand your needs and the potential of your project.

Then we can suggest the most appropriate ways to provide the funding you need

REAL EXAMPLES OF WHAT WE CAN DO

• Find the most competitive funding for the conversion of warehouse into flats

• Help find finance to allow a small developer build an estate on a brownfield site

• Source a refurbishment bridge for a builder to acquire a series of properties at auction and update them for resale

• Find the most competitive lender for a small developer to buy a derelict house and replace it with two new properties

• Help fund the complete refurbishment of an ex-HMO into an upmarket residential property

Getting the finances that are right for you

Finding the right lender for your development project can be crucial to its success and profitability. That’s why it is important to speak to the Rangewell team without delay. It means getting the support of an expert team with personal experience both of development and the challenges you face, and in finding the financial solutions for them. We can discuss your objectives, and help find answers scaled to fit your business as it grows. When you call us, we can explain the options – and find you the solutions you need fast.