For quite a while now property developers have not found it easy to find finance for their ventures, which has had a negative impact on the UK’s housing stock. It may be difficult to obtain a property development loan from a high street bank or lender. Borrowers, therefore, need to seek out lenders that specialise in property development lending. NGI Finance has access to lenders experienced in property development finance. Including a relatively new to market lender, building a strong track record for development funding.
Property development finance can cover a range of things, but generally will be used for new buildings, purchasing land or refurbishing existing properties.
Most property development finance loans will be secured against the land or property that is being developed. This is standard practice.
The lender will look for a developer with proven experience, this means that if you have no experience, it may be wise to partner or join forces with someone who has property development experience, to reduce the risk, as well as the cost of the financing.
Rates for property development finance are rarely standardised in the same way as your home mortgage. Here at NGI we have work with our panel of lenders to negotiate the best rate for each individual proposal.
NGI Finance provides finance for all aspects of your business. Construction companies may be interested in talking to us about our unsecured business loan that can be used to provide funding for the more difficult to finance assets for example scaffolding equipment.
An Area Director from a High Street Bank approached Maria at NGI Finance to help with his long standing client: he really wanted to underwrite this deal, however, as it was a residential development proposal, it did not fit with the bank lending criteria.
Maria arranged a £630,000 facility over a 15 month term with no early settlement penalties to build 4 terraced houses.