Development Finance Loan Directory

by Neil Patterson

17:07 PM, 5th October 2012
About 6 years ago

Development Finance Loan Directory

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Development Finance Loan Directory

The Loan Directory will be a regular feature and will publish competitive and innovative product offerings to help clients identify appropriate funding facilities.

In this first publication we provide a selection of the most competitive deals on offer in respect of Development Finance. Market leading features are highlighted for easy reference.

P118 Development Loan Directory:

In association with Brooklands Commercial Finance Ltd

Brooklands is a whole of market broker with access to semi-exclusive arrangements with various lenders.

 Loan Size

LTV

Interest Rate

 

Arrangement Fee

Term (Min/Max)

Purpose/Features

Development Finance

£50k – £2m

65% site value

100% build costs

From 0.583% per month

2%

1 month

18 months

No Exit Fee.Residential development.Interest serviced or rolled up into the loan.

£50k – £2m

50% site value

100% build costs

1.45% per month

2%

1 month

12 months

No Exit Fee.Residential development.Interest serviced or deducted from the loan.

£500k – Unlimited

50% site value

60% build costs

From 0.45% per month

1.75%

3 months

24 months

Exit Fee 1.75% on loan amount.Residential and commercial.Interest to be serviced.

£1m – £15m

90% of total costs

From 0.77% per month

1.5%

12 months 36 months

Exit Fee 2% of GDV.London & S.E.Other locations strong demand.

To discuss any commercial deal please call us on 01603 489118 or email info@property118.com

For Development finance please click here.

For Commercial mortgages please click here.

For Bridging finance please click here.

If you would like to add your own requirements and search for the most popular available Buy to Let products please click here

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Comments

9:09 AM, 6th October 2012
About 6 years ago

Just to add some balance to this post, I contacted brooklands on the strength of a previous article, and the rates available were nothing like published above, I think to achieve anything even close to that you have to be within m25.

We were quoted 20% plus fees for a development with gdv of 900k where the land was already owned outright. Our company has traded since 1985 with good accounts available, so the only issue I suppose must be location (north west).

So don't get too excited by the above unless you are considering a London development.

Mark Alexander

12:49 PM, 6th October 2012
About 6 years ago

And to balance the post from North West Builder I think it's fair to say "horses for courses". I have no idea who North West builder is or his or her circumstances and neither do other readers. However, what we do know is that lenders in this market calculate their charges based primarily on perceived risk. I have no reason to believe the above deals are not achievable, nor do I have any reason to believe North West Builder was quoted 20%. Surely the bottom line is that finance is available via brokers which isn't ordinarily available? Cost is only relevant in terms of whether a prospective borrower is being offered the best possible deal for their, if they are not being offered the best deal they they can go elsewhere and if the best deal being offered doesn't stack up they don't do the development wouldn't you agree?

15:53 PM, 6th October 2012
About 6 years ago

Our development was as follows:
6 houses, mix of 3/4 bedrooms.
Land owned outright unencumbered.
Company accounts showing shareholders funds in excess of loan requirements.
Security offered first charge on land and debenture + personal guarentee's.
An estate agents letter that stated any new build family houses would be very popular, nothing similar in the area.
Development experience over 25 years, exclusively new build residential developments.

Obviously you can be biased, but I thought the security offered was fairly strong.

We were told that the best deal available was in excess of 20% per annum plus fees and costs.

I could only deduce the problem was the location, and I maintain my comment not to necessarily take the rates displayed as read, you can probably only get close to them within the M25. At no point did I suggest the broker hadn't achieved the best possible deal available.

Mark Alexander

17:59 PM, 6th October 2012
About 6 years ago

I have emailed two consultants at Brooklands inviting them to comment. I would very much like to understand whether rates differ based on location and if so why.

Cliff Verrill - FCIB, CeMAP

10:11 AM, 9th October 2012
About 6 years ago

You
are correct in that lenders will offer terms based on their perceived risk and,
as such, rates will vary considerably. In providing details of the best rates
available, we are highlighting the fact that good rates/terms are available.
Admittedly, the risk factors are weighted more favourably to London
and the South East but we have experience of achieving these rates in other
areas of prime location. In addition rates and terms are becoming more competitive
as new entrants are coming to market. I would be pleased to review your
requirements.


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