Types of Development Finance

UK Property Finance works with different-sized developers across the UK to provide expert funding solutions for a whole range of development projects. Below is an example of a few key areas where we offer financial solutions; however, we are on hand 7 days a week from 9 a.m. to 9 p.m. to discuss development plan opportunities.

Residential development

This type of financing can help clients who wish to develop brown or greenfield sites into residential houses or flats or convert larger homes into houses of multiple occupancy (HMO). This type of finance is commercially oriented due to it not being owner-occupied.

Clients are usually unable to finance traditional lending routes such as their bank, which could be for a multitude of reasons, such as traditional banks perceiving residential development to be high-risk.

Finance is sourced based on the value of the property, which is used as security against the loan and is not usually based on the individual’s monthly affordability.

Financial structure

Development finance is structured towards property value and not on the borrower’s past credit history.

All lenders will be looking to meet the following criteria:

  • Ensuring the project has sufficient funds to complete the whole project, including unforeseen costs, is vital.
  • Make sure that the drawdowns complement the cash flow of the entire project.
  • The project definitely needs to demonstrate a good profit and make sound business sense.

Commercial and semi-commercial developments

Short-term financing can be obtained for a variety of reasons, including stock purchases, short-term cash flow concerns, and even tax liabilities.
Commercial borrowing is based on the property’s brick-and-mortar value, or the worth of the building as a security.

We have a number of banking contacts who understand our clients’ development finance needs and can provide bespoke funding solutions.

We understand that lenders require clients to demonstrate the appropriate development experience, and your development must have full planning permission.