Property Development Finance

Whether you are an experienced developer or an enthusiastic amateur about to embark on your first renovation project, we offer a wide range of property development funding options.

Our established list of clientele consists of both newcomers and seasoned professionals in search of suitable development finance that will help them realise their ambitions while enabling them to maximise profits, which is the ultimate goal of any developer.

Flexible, affordable development loans

When it comes to property development, whether it is a realistic yet highly ambitious new build project or a relatively straightforward refurbishment task, the actual finance itself can often represent the dividing line between success and failure. We are fully experienced and highly competent in terms of sourcing the most appropriate funding options based on both the needs of the developer and the project they are looking to complete.

With no upfront fees and no credit checks required, the development loan you need could be transferred to your account in no time at all. If you have any questions in relation to development financing, then please do not hesitate to ask.

Let our AI software compare rates for development finance against high-street banks and other institutions:

Main Stream Banks
Barclays Halifax
HSBC Lloyds Bank
Martin Lewis Nationwide
NatWest Post Office
RBS Santander
Shawbrook Bank Skipton Building Society
Tesco Together Money
UK Bridging Loans Yorkshire Bank

Residential property development

Usually involving the development of flats or houses on brown or greenfield sites, residential property development sometimes entails the conversion of a large house into HMOs—flats or bedsit apartments, or vice versa. Developments of this nature are usually carried out as a commercial venture and not with the intention of the owner occupying the dwelling(s) once completed.

If you are in the situation where you are seeking to renovate or extend a property while finding yourself unable to obtain suitable financing from a bank or building society, a residential property development loan is often the ideal solution. As the funds are secured against the market value of the property, your ability to afford regular repayments on an ongoing monthly basis will not be taken into account.

Self-build finance

If you are looking to build a new home from scratch, which you intend to live in yourself once completed, you will typically require self-build development finance. This type of product is FCA-regulated and is arranged in much the same way as a conventional mortgage. Therefore, you will need to show that you are capable of affording the monthly repayments when applying for this type of funding.

Commercial and semi-commercial developments

This type of finance is suitable for funding the development of commercial properties, including offices, industrial units, retail outlets, and semi-commercial projects such as shops with separate living accommodation included as part of the premises.

Commercial and semi-commercial development finance can be used for a variety of reasons, such as the purchase of building materials or stock, and as a means of solving immediate cash flow issues, including tax bills. When you apply for commercial finance, the loan is secured against the brick-and-mortar value of the property, which may also include land assets. “Good Will” is not included as part of the valuation, as the lender is only interested in the worth of the property itself and not the value of the actual business.

Property renovation and refurbishment

These types of development projects encompass complete renovation and refurbishment work, which often includes the conversion of derelict buildings, such as barns or disused industrial buildings, into habitable dwellings. Basically, this could be any property with four walls that may have missing doors and windows or is lacking a staircase, solid flooring, or a roof. This also extends to utilities such as running water, electricity, or gas. If you intend to occupy the building once converted, you will need to apply for an FCA-regulated development loan.

However, if you are planning to sell the property once the renovation work is completed, FCA regulation will not be required.

Development finance glossary

Here is a glossary of terms that you are likely to encounter when reading through the various pages on our website or when planning a development project:

Accessibility: This describes an individual’s ability to access a given area or building.

Capital: The money invested in a residential or commercial property.

Capital gain: The increase in value of an investment over a given length of time.

Change of use: This is when a developer intends to change the way in which a building is used, for example, by converting an office block into residential flats or vice versa. In most cases, planning permission is required.

Contract for sale: A legally binding document that describes the outlining details of a land sale in any part of the UK.

Covenant: A written document that relates to the various terms of a real estate transaction. A covenant can include the rights of access given to a third party, or it may provide a warranty that specifies whether or not a property title has any claims.

Environmental agency: A governmental department that is responsible for the prevention of pollution and its effects on the local environment. As well as raising environmental concerns, the Environmental Agency can issue fines and penalties to any party found in violation of waste removal laws.

Green belt: This refers to an area of land that is protected against development.

Judicial review: This refers to a High Court hearing that reviews a previously made decision by a local authority. This often includes planning decisions.

Lawful development certificate: A certificate indicating that a development has been approved to go ahead. LDCs are issued by a local planning board.

Limits of development: Before a building project commences, the local council may impose various restrictions with the aim of protecting the surrounding environment from intrusive construction work.

Localism bill: A legal ruling that provides written approval of a party’s right to build on a local property. This bill was passed recently by the Coalition Government.

Master plan: The architectural blueprints and final outline for a property development project.

Planning brief: This refers to a type of document that is submitted to a local council, specifying the intended scope of a development. A planning brief includes detailed information on the design and framework of a construction project alongside the master plan.

Planning permission: The legally required approval from a local council to go ahead with a development project. This can be requested via an official planning application, which contains the developer’s outline for the project. Once planning permission has been acquired, the developer will receive an official notice to start the development.

Prior approval: If a developer submits a proposal for a project and it has not been processed or turned down by the planning authority in a given timeframe, it can be automatically assumed that permission has been granted.

ROI (return on investment): This is the return on an initial investment expressed as a percentage value.

Right to build: This is included as part of the Localism Bill, and it empowers local communities to make independent decisions on whether or not a development should be allowed to take place.

Rural exceptions policy: A policy that allows affordable housing developments to take place on pre-allocated sites in rural areas. This is aimed at providing reasonably priced accommodation for those in poverty.

Section 106 agreement: This is a legal treaty that specifies whether or not additional construction may be carried out once the initial construction phase has started. Section 106: Agreements are made between developers and local authorities.

Sustainability appraisal: This is an evaluation that is carried out by a local council in order to create a sustainable housing supply for the next 15 to 20 years. It enables developers to create new neighbourhoods to provide affordable housing in overpopulated areas.

Title: Under English law, all of the land in England is officially owned by the Crown. However, tenure of the land is granted to citizens by means of a title.

Urban regeneration: This is a continual development process aimed at improving the growth of cities and large towns in terms of housing, the local economy, and the environment as a whole.

ZVI, or zone of visual influence: This refers to the potential view that will be created when a development is constructed.