Property development finance primarily covers new buildings, purchasing land and refurbishing properties. In recent years, many property developers have had trouble finding property development finance. This is due, in part, to the financial crash which has meant that very few people can afford the high prices that have been spurred by high demand. In turn, this has had a negative impact on the UK construction industry, meaning less houses are being built.
Due to the turbulent nature of the financial markets, high street banks and lenders are reluctant to issue property development finance, which means borrowers need to look elsewhere. Unlike high street lenders, an independent property development finance provider has the ability to tailor their offering around the needs of the customer and can react quicker to changes in the market. In order to lower risk, lenders will often only consider financing developers with a proven track record. So, if you’re a relatively new developer, it may be worth teaming up with another developer who perhaps has some experience, meaning you can spread the cost and the risk.
What is the lending criteria?
- If you don’t own the land, we’ll fund up to 70 % of land purchase price and 60% of construction costs. If you own the land you’ll be building on, we’ll cover 100% of the build costs.
- We like to work with experienced developers who have done their research, which is why the lender will ask for confirmation of planning permission / building regulation status and an independent valuation report prior to issuing funding.
- You must be supported by a building surveyor who can confirm the costs and monitor the project.
As an independent property development finance provider, NGI Finance have access to a range of lenders who have a wealth of experience in property development finance, which means we can negotiate to achieve the best rate for each proposal. We can offer finance of up to 75% of total project costs, whilst boasting no exit or early repayment fees. If you require property development finance, then you might also need asset finance. NGI can offer competitive finance rates on the crucial assets required for property development finance, such as plant, machinery and equipment.
For more information on property development finance, contact NGI Finance. We’ll be happy to guide you through the financing process and provide you with the property development finance you require for your next project.