Don’t Wait……..Develop it Now!! Say our partners specialising in property development finance

by Mark Alexander

8 years ago

Don’t Wait……..Develop it Now!! Say our partners specialising in property development finance

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Don’t Wait……..Develop it Now!! Say our partners specialising in property development finance

We speak to many property developers who tell us that they are not doing any new developments now, “because the economy is weak and the margins charged by funders are too high”.

Banks in the commercial and corporate sectors are paying low rates of interest on deposits which are way below the rate of inflation. Inflation remained at 3.1% in August, well above the governments 2% target.

If you need to get your cash working, do what you are good at, property development.

“Aah,” they say, “but the Banks are not lending”.

This might be true of the High Street lenders but surprisingly there is a strong appetite to fund good deals by the smaller lenders who source their business through specialist development finance brokerages.

The likely impact of Basle III on the High Street is that capital will become more scarce and therefore pricing for the banks margins will increase.

Borrowers are being warned that the new rules aimed at making the financial system more stable will force banks to lend less and charge higher interest rates.

Furthermore, if the Monetary Policy Committee does not get inflation under control soon, there will have to be rises in Bank Base Rate and certain committee members are already calling for this.

So, Don’t Wait………..Develop it Now!!

Our Commercial Finance Partners specialise in Property Development Finance and can help guide you to the lenders which are truly in the market and are open for business. To arrange an introduction to one of our specialist Development Finance Consultants, please call Paul Baudinet on 01603 428588 or email pbaudinet@themoneycentre.net to provide him with a brief overview of the developments you are considering. As an example:

  • Land owned, value £150,000, finance outstanding £75,000
  • Looking to build 6 town houses on an ex pub site at AnyTown High Street
  • Development cost £420,000
  • Detailed planning consents obtained
  • End value £150,000 each, total gross development value on completion £900,000
  • We have £100,000 to invest into a project and we’ve completed over 15 developments over the last 20 years.


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16.9% gross yearly ROI predicted on this development in Leeds