Don’t get stuck in the wrong development loanMake Text Bigger
This year we have seen an increase in the number of readers, who are also developers, asking for help to repay commercial development finance on recently completed properties. Then looking to replace the borrowing with loans that fit what they need now post completion.
Every development project is different, but Malcolm Jones (Principal of Brooklands Commercial Finance) has reported the most common reasons for needing to refinance below:
- My development lender won’t let me drawdown on my new loan until I have repaid my old one
- My development lender won’t let me draw out any of the profit against the increased Gross Development Value post completion of works.
- My development lender won’t give me more time to sell at the maximum price or once the market is more buoyant in the Spring.
Malcolm and our team regularly help Property Developer readers find the finance that can do all of the above from the start rather than needing to instantly move lender post completion. This can be done using competitive Short Term loan products as members of the National Association of Commercial Finance Brokers.
Short term development product feature include:
- Interest rates charged from 0.59% per month
- Up to a maximum of 75% Loan to Value
- A maximum term of 18 months
- No exit fees or early redemption penalties
- Typical loan arrangement fees of around 1.95% which can be added on top of the maximum Loan to Value.
- Option to partially repay the loan from the sale of multi-units. This gives developers the ability to increase cash flow from each sale as they complete on multiple unit blocks.
If you do need any assistance development finance or any type of property loan please complete the contact form below and we will be happy to help.