What can development finance loans be used for?
Development finance can be used for a wide range of purposes including:
- New builds and conversions.
- Single-unit, or, multi-unit building projects.
- Purchase and completion of part-built developments.
- Specialist development such as hotels, care homes, commercial and PBSA.
- Structured finance deals to allow developers to release equity as sites complete.
What are the criteria to get a development finance loan?
For property development finance lenders it is key that the site is profitable, the build cost and timelines are realistic and that the exit strategy is substantiated.
For experienced developers, previous track record of similar developments will support an application.
For borrowers new to developing, lenders will likely look at the team supporting you in your development, so having contracts in place with proven contractors will help support your application.
What type of property development finance are available?
- Senior debt – typically funding up to 65% GDV, or, 80% of costs.
- Stretched senior debt – potentially funding up to 85% GDV and 100% of costs.
- Commercial development finance.
- Mezzanine finance.
- Land purchase finance.
- Heavy and light refurbishment finance.
- Structured property finance.
- Development exit finance.
Why use Newable Finance for development finance?
Newable Finance’s team has supported property developers to secure funding across a range of asset classes and geographies.
We use our knowledge of the property development finance landscape to tailor your development finance application for lenders to ensure you get a deal you are happy with. We are confident that we can support you secure finance and won’t charge a fee unless we are able to do so.