Bridging And Development
Property development finance is the funding solution to aid property developers with refurbishment or build of a residential property. Whether you are a small property developer building 2 units a year or a company with many schemes, property development finance is available to you.
Residential property development finance:
Helps with the purchase of residential building sites and the development of houses or flats for sale. Funding is available for the purchase of the land, construction costs, utilities, professional costs such as architect’s fees, and roll-up of interest – subject to lending criteria. We can also provide finance for residential conversions such as barns or churches.
Commercial property development finance:
Aids with the development of commercial properties. Full repayment of any loan would be expected to emerge from the sale of the property or refinance after the work has been completed.
Purchase a property for development using a bridging loan:
Seen a potential money spinner? Driven past an old and empty dilapidated Victorian terraced property and dreamed of ending your day job and using your skills to help turn this wreck in to something you and the local community could be proud of? Maybe it can be turned into 4 x 2 bedroom flats? Due to the run down condition a traditional mortgage would not be suitable to finance this project so why not use a bridging loan to buy this for property development and then once the work is complete and the house is split into 4 separate units these can either be transferred to a traditional mortgage and the properties rented to provide an income or they can be sold in part or as a whole hopefully for a big profit.
You have the opportunity to purchase a property at a very low price but it needs a lot of property development. Once renovated the property could be valued much higher therefore making a sizeable profit. You have looked at obtaining a mortgage but have been refused as the property is not suitable due to its state of disrepair. A property development loans can be secured on the purchase and property development. To repay the property development loan you can either refinance with a mortgage or sell. The profit released can then be used for another purchase if required.
Property development loans are provided for small developments like Barn Conversions, single and multiple unit house builds small flat developments, multiple flat conversions and refurbishment projects.