Posts Tagged development financing

There are several exciting opportunities – for new and existing property developers – including energy efficient developments, conversions of retail units to flats and proposed reforms of the planning system by the government. As a result, we are seeing an increase in development inquiries so we have created this short introduction to development finance to help clients – existing and new – understand the type of projects that development finance can be used for, the costs involved and how the funds are paid. What is a development finance? There are several exciting opportunities – for new and existing property developers – including energy efficient developments, conversions of retail units to flats and proposed reforms of the planning system by the government. Property development finance is a type of short-term, secured finance that is used for many small, medium, and large-scale property projects, including renovations, office block conversions or to purchase and build on previously undeveloped land from the ground up. Development finance is used by many different types of people from private individuals to portfolio developers and small to large companies. Unlike a traditional mortgage, development finance is a short to medium term loan that is secured against the projected gross value rather than the current value of the land/property. It can be complicated so it is beneficial to use an experienced broker. What can development finance be used for? What are the different types of development finance? • Residential property – development finance may be used to build one or more house, convert an office block or retail unit into houses/flat, build an apartment block or renovate a residential property. This can be used by developers looking to sell or rent the property or individuals looking to build their dream home. • Commercial property development – used to build