Development finance provides tailored funding for new builds and major renovations, with funds released in stages to match project milestones. Ideal for developers planning to sell or rent completed properties, it offers flexibility for a range of construction needs. At A Mortgage Shop, we help clients secure the right solutions to bring their projects to life.
Property development finance is a type of funding that is specifically designed to help property developers fund the construction or renovation of a property project. Here’s how it works:
Overall, property development finance works by providing funding to property developers to help them construct or renovate a property project. The finance is provided by a lender, who will assess the application, conduct a valuation, structure the loan, charge interest, require repayment, and require security.
Property developers apply for finance from a lender, such as a bank or specialized finance company. The lender will assess the application and decide whether to approve the funding.
The lender will then conduct a valuation of the property project to determine its potential value and the level of risk involved in financing it.
The lender will structure the loan based on the specific needs of the property project. The loan may be provided in stages, with each stage being released as the project progresses.
The lender will charge interest on the loan, which may be fixed or variable. The interest rate will be based on the level of risk involved in financing the project.
The property developer will be required to repay the loan over an agreed period, which may be several years. The repayment schedule will be based on the cash flow projections of the property project.
The lender will require security for the loan, which may be in the form of a charge over the property project or other assets owned by the property developer.
Book an appointment with our team to talk through your mortgage needs and get personalized advice at a time that works for you.
Lorem ipsum dolor sit amet consectetur adipiscing elit hac porta, tempus eros mollis facilisis vestibulum.
Lorem ipsum dolor sit amet consectetur adipiscing elit hac facilisis vestibulum.
2025, All Rights Amortgageshop
