Investment in property is becoming ever more popular, for many commercial properties property development finance is becoming crucial. 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.
As financial markets are tough these days, 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. They offer funding for up to 75% of total project costs, with no exit or early repayment fees. 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.
NGI helping with development where the banks couldn’t
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.
Contact us today for more information; 01993 706403.
Bridge to Development
Signs of recovery in the housing market have led to an increase in residential building developments. Having completed a project, developers then look to move swiftly onto the next; sometimes before all or part of the property is sold.
NGI can discuss the various options available: including refinancing of existing site or a simple bridging loan to purchase the next site.