How much will you repay on your development finance?

Development Finance Calculator

Enter your details for a quick calculation of your loan repayment

Create the funding solution you need with our online development finance calculator. Expert finance for UK property developers in any sector.

Development finance repayment

The Donkey Finance property development funding calculator is a unique tool that enables you to work out the most appropriate funding solutions in line with your individual borrowing needs with regard to any specific project you have in mind.

Whether you are considering a residential, commercial, or semi-commercial property development, we have all the necessary resources to ensure your project is feasible and successful and delivers the highest achievable ROI.

Development finance lending criteria

The criteria for development funding will depend on the project itself and the actual lender. In order to find the most suitable deal, we will assess each application on its individual merits before searching our extensive panel of lenders to find an appropriate solution.

  • Loan terms typically extend to 24 months.
  • A minimum loan size of £30,000 usually applies, although there is no ceiling limit on funding.
  • Interest rates are usually fixed at an annual rate of around 7%. This is rolled up and added to the total loan amount, so you will normally settle the interest at the end of the term as opposed to monthly.
  • The lender arrangement fee is between 1 and 2% of the loan size. In some instances, it may be possible to add this fee to the loan balance.
  • Exit fees are not always necessary, although if the LTV ratio is unusually high, an exit fee may be applicable.
  • Donkey Finance can secure funding for up to 75% of the land purchase price and 100% of the actual build costs.
  • Funds will be released in order to match your cash flow requirements, and the timing of drawdowns will be assessed by an appointed QS/monitoring surveyor.
  • Before development begins, the lender will visit and inspect the site and take a detailed look at your plans and costs in order to ensure your proposal is realistically profitable. The valuer will also assess and determine the GDV of the project (gross development value) once it has been built.

Development finance for projects of all types and sizes

Perhaps you are looking for funds in order to convert a disused office block into mixed-use or semi-commercial premises, such as a shopping complex with residential accommodation. You may even have more modest ambitions and might simply require a small development loan to finance the renovation and change of use of an old barn into a contemporary farmhouse with running water and central heating.

Whatever your needs and wherever you are based, let Donkey Finance source an appropriate development funding solution on your behalf, with flexible borrowing terms and the most competitive rates of interest in the UK.

How is development finance calculated?

Several factors influence development financing calculations, including overall project cost, property or land valuation, developer expertise, and lender risk assessment. Lenders typically examine loan-to-cost (LTC) and loan-to-value (LTV) ratios when deciding how much development funding to issue. The LTC ratio shows the proportion of the project cost that the lender is prepared to finance, whereas the LTV ratio shows the percentage of the property’s worth that the lender would lend against. Interest rates, payback terms, and other financial arrangements are also considered in the computation, depending on the parameters of the development financing agreement.

Can you get 100% development finance?

While it is feasible to obtain 100% development financing in some situations, it is uncommon and typically necessitates a good track record, solid project feasibility, and collateral or guarantees to reduce the lender’s risk. Lenders who provide 100% development credit frequently analyse projects exhaustively to guarantee their viability and reduce the risk of failure. If traditional lenders are unable to provide 100% development finance, developers may look into other financing sources or partnerships to achieve the capital they need for their projects.

How much does development finance cost?

The cost of development finance varies according to the lender’s terms, interest rates, fees, and the perceived risk of the project. Interest payments, arrangement costs, surveyor fees, legal fees, and other loan-related expenses are common in development financing. Because of the increased risk associated with property development projects, interest rates for development finance may be higher than for typical mortgages. To establish the viability and profitability of a development project, developers should carefully analyse the total cost of financing as well as the possible returns.

How much can I borrow for property development?

The amount you may borrow for property development is determined by several aspects, including the project’s size, location, viability, predicted earnings, and financial trustworthiness. Lenders often evaluate the viability of a development project by considering criteria such as the estimated ultimate value of the finished project, the degree of demand for the properties, and the developer’s experience and track record. Loan-to-cost (LTC) and loan-to-value (LTV) ratios are used to calculate the maximum amount of money available, with lenders often giving a proportion of the project’s total cost or property value based on their risk assessment and lending requirements. Developers should provide lenders with detailed project plans and financial estimates to meet their property development borrowing needs.