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We have a wide range of competitive and flexible development finance products that are perfect for property development.
Friends Capital have existing relationships with specialist Development Finance lenders and are experts in advising on development finance. We can help you find the best possible mortgage deal. We will review your personal circumstances and then search the entire market to ensure you get the best mortgage rates possible. We will then deal with all the paperwork, submit your mortgage application, liaise with your mortgage lender and solicitor, and ensure that your mortgage application is completed as quickly as possible. We can:
Property development finance is a short-term loan for residential property developments, such as refurbishment projects or construction. The finance is paid back over stages – referred to as a term.
Different lenders will have their own definition of light and heavy refurbishment, but generally:
Development finance can be used to finance both the land purchase, and also the build costs.
When looking at how much you can borrow you will need to factor in:
You can normally borrow 70% of the land/site cost and 100% of the build cost.
All lenders will want to see a clear exit plan before they will agree your loan. The most common exit routes are:
You may decide to buy a new home, and rent out your current home. This is a process called ‘Let to Buy’. If you move out of the property you’re currently living in and intend to rent it out, you’ll need a Buy to Let mortgage. You could ask your current lender for their consent to let the property out. However, this may involve a fee or switching your mortgage to a higher rate. Not all lenders will allow this.
Alternatively, you can remortgage to a new lender on a buy to let deal. If you plan to stick with your current lender, you must inform them that you intend to let your home – failure to do so could be classed as a breach of contract. You should seek professional advice from a mortgage broker regarding your situation, so you can choose the best financially viable option for your circumstances.
Friends Capital have pre-existing relationships with development finance lenders. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:
One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation.
When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available.
If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’.
If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.