Development Finance

Property development loans typically have terms ranging from 18 to 24 months. 

However, the exact duration of the loan depends on the nature of the project. Smaller, more straightforward ventures may only require a loan term of around 6 months, while larger or more complex developments may be financed for a longer period.

 To secure the best property development finance rates, you’ll typically need to provide a substantial upfront deposit and demonstrate a solid track record in similar projects. 

Lenders tend to favour lower-risk projects, and the more you borrow, the better the rates you can typically access.

Development finance rates usually start from around 4.5% - 5% per year, depending on the specifics of your project and financial profile.

Property development finance can facilitate a wide range of ventures, including single plots, multiple schemes, commercial accommodations, conversions, refurbishments, and land purchases. Aside from enabling various types of projects, there are several other key benefits of property development finance:

1. Take On Bigger Development Projects

One of the main advantages is that it allows you to access a larger sum of money, enabling you to take on projects you may not have been able to handle otherwise. With additional funding, you can pursue bigger, more lucrative projects, which can lead to significant growth for your business. Plus, it enhances your project portfolio, showcasing a wider range of completed ventures to potential clients.

2. Spend Less Money

By securing a property development loan that covers a large percentage of the Gross Development Value (GDV), you won’t have to dip into your own savings for the project. This frees up cash for other opportunities or investments in different areas of your business. The ability to maintain financial flexibility in the early stages of a development project gives you more freedom to pursue additional ventures.

3. Increase Your ROI

When you invest less of your own capital into a development and reduce the impact on your profits, you can achieve much greater returns on the money you've invested. This enhanced return on investment (ROI) can significantly contribute to the overall growth and success of your business.