If you are reading this, then you are either thinking of getting into property development and want to find out more about how to secure finance to start your property development journey. Or you already have experience in property development and are now looking to take it up a notch, to work on some larger projects, and are looking for information around securing larger loans.
It is a given that as a property developer, one of your main concerns will be raising capital for development or ground-up projects. One common way of securing finance for property development is through a loan. However, did you know that the process to apply for a loan can be complicated, and require significant research as well as providing a host of necessary documentation?
There are also other things such as planning permission, architects to take into consideration. It is also worth mentioning having a solicitor ready – as some properties or land could have covenants attached to them, so understanding any risks associated with the purchase is a good idea.
There will also be objectives that you need to demonstrate such as showing timelines for various stages in the development process in addition to the expected completion times.
Property Development loans are available for many projects, such as commercial premises purchase, second-charge, cash injection, and buy-to-let. However, securing a loan usually requires the assistance of a specialist broker that can help and advise you throughout the loan application process.
The type of loan that you apply for will depend on the project goals – if you are looking to renovate a property quickly to sell on then you could consider as bridging loan, versus a ground-up development, which may require a long-term loan of 30 years or more.
Usually, property development will require considerable market knowledge – as well as having appropriate contingencies in place, such as the correct level of insurance cover. There is a lot to get right in the overall property development process – getting advice from a professional broker in terms of finances will not only save you time, but it could end up saving you money overall. Property development brokers tend to have considerable experience in this area, and some brokers may also be able to recommend solicitors.
Would you like to discuss your mortgage options?
Are you looking at your next development property, ready to maximize your return?
As independent mortgage brokers, we can offer you quick and efficient practical solutions for varied development sizes. As a specialist broker, we have access to comprehensive loan, mortgage, and insurance markets, enabling us to find you competitive options and prices across commercial products.
Call us today to see how we can help with your property development finance.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk