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Advantages of development finance

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What are the pros of property development finance?

Development finance is available and accessible to experienced property developers, builders or first-time developers to build a new property or convert an existing building.

In short, we are here to help you get your project off the ground.

We can help you to build a new home or a commercial property, either for investment with the intention of selling on the property or for your own occupation.

How does development finance work?

There is a lot of potential in property development finance.

Many people have dream building projects in mind but do not know where to start, or do not have the full capital to begin building.

Property development loans help people to achieve their property goals and aspirations through:

  • Home renovations, refurbishments and extensions to increase the sale price
  • The updating or improvement of an old property with the intention of reselling it

The maximum amount you can borrow with us is up to 60% of the proven gross development value of the finished project and up to 100% of the build costs.

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The proposed site would need to have planning permission, or can be agreed subject to planning.

Depending on the lender and experience – as we grant all loans on a case-by-case basis.

We offer loans ranging from £100,000 to £2.5 million and lower rates for £1 million-plus transactions and 6-12 month borrowing terms.

What are the main advantages of development finance?

Property development finance is the most extensive borrowing facility currently available on the UK market.

We can help you to get your project off the ground, as long as you have a clear plan in place and are capable of completing the new home within 12 months of securing the loan.

What can development finance offer?

There are many different types of developments that can be financed. H

ere, at Hunter Finance we offer property finance for new builds where a piece of land is acquired and in some cases, property renovations and restructures that increase the GDV for resale.

In some circumstances, lenders may also be able to consider applications for residential redevelopment where a lot of structure work needs to be carried out, with the intention of raising the property value before it goes on the market.

More popularly, development finance loans cover large development projects. These types of builds consist of conversions and new homes.

The fact here is that commercial developments and large conversions have the potential to provide huge returns, which attracts many investors.

With the backing of a property development finance company like Hunter Finance, you can:

  • secure money on properties and plots that may be considered unsuitable
  • or impractical by other lenders, such as derelict and disused buildings.

Whatever your plans are for the plot, be it a new home for yourself, or residential development, development finance will support your project from start to finish.

How do I apply for development finance?

In regards to development loans, lenders often assess the predicted value of the property once the project has been completed.

In order to apply for property development finance, it is the responsibility of the lender to submit an application, which outlines:

  • How much they paid for the property/land
  • The proposed cost of the development and professional fees
  • Building timescales

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From here, based on this information, Hunter Finance will send out an expert valuer to confirm the details are correct, which can be often be done very quickly in order not to delay your project any further.

Repaying the loan

The structure of development finance makes it very appealing to many builders or first-time developers.

Finance provided can be repaid relatively quickly, keeping borrowing costs low and completion times fast.

Interest is only charged on the funds released, which can help when looking at the overall costs, as funding is released periodically throughout the project.

At Hunter Finance, we do not discriminate against smaller projects.

A client looking to update their home is as important as one that is building a new housing development.

There are no limitations on how much can be borrowed for an individual project.

If it is deemed viable and the plans are in place, our financing plans could cover up to 100% of the costs of your project.

Why should I choose Hunter Finance?

It’s true that there are many development finance companies out there, but we want to save you the time and hassle.

We have a wealth of experience, a dedicated development finance team, and we don’t rely on other financial institutions, taking the hassle away from your project.

With us, there are no hidden fees, no brokers and no middlemen.

So, whether you’re an experienced developer, building a property portfolio, or looking to develop your first property, we can help.

Contact us today for initial guidance on financing your project.


More on the key features of our development finance:

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    If we can help you get the best rate on a loan we will say so, if we can’t we will be able to point you in the right direction or suggest alternative financial vehicles.

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