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Loan Application Checklist

loan application checklist

Loan Applications: What You Need to Provide

Hunter Finance provides fast funding for developers in the South East of England.

We’ve worked with over 500 borrowers and lent £75,000,000+

We help both experienced and first-time developers to build new homes and complete renovations by providing fast funding at competitive rates.

The application process for development loans may seem complex, but in reality, the process is relatively straightforward and transparent, providing you meet the eligibility criteria and provide all the relevant documentation.

Here is our insider’s guide to everything you need to know about applying to Hunter Finance for a property development finance loan.

What do you need to begin a development finance loan application?

Detail is everything in the property development world and we expect applicants to know their project inside out.

You’ll need to provide details of:

  • The purchase price of land and any existing buildings
  • Total build cost (including all supplies and labour)
  • The projected value of the development on completion (GDV)
  • A contingency plan with solutions for any potential setbacks
  • Clear and realistic project timescales (including expected or possible contingencies)
  • Your experience in Property Development and a history of previous developments
  • Your professional team (builders, planner, architect etc.)
  • Planning permission (including restrictions) and building regulations
  • A viable exit strategy

The best way to make sure your application is accepted

hunter-finance-reviews
Read more reviews on Trustpilot.

We aim to provide finance to as many new developments as possible, and Hunter Finance has indeed funded over 500 profitable housing developments over the last 10 years.

There are some concrete ways to ensure that your application has the best possible chance of succeeding.

They can be divided into two main categories:

  • Detail and accuracy
  • Ensure that you include as much specific detail in your application as possible
  • Make sure that the breakdown of costs and timescales are accurate and specific
  • Present this information clearly and concisely
  • Honesty
  • Never inflate any figures to make your application more impressive
  • Overestimating the value of the finished development is a sign of untrustworthiness or lack of proper research
  • Do not exaggerate your own experience as finance investors will consider applications from first-time developers

Don’t forget the paperwork

We will need to see certain documents before proceeding with any application. Having all your paperwork completed and checked at the start of the process will speed up your application.

Ensure you have:

  • A detailed breakdown of all costs involved in every stage of the build
  • Planning permission applications or approved documents
  • Architectural drawings and designs
  • A feasible and detailed schedule of works (including contingency plans)
  • CVs detailing the experience of all professionals involved in the project (architects, contractors etc.)
  • An Asset, Liability, Income and Expenditure Summary (ALIE) – This shows your investor that you can maintain your cash flow during the project
  • Details of any previous development experience you may have
  • A detailed project exit strategy, such as the sale of the development or refinancing

Applying for a loan with Hunter Finance:

JAMES BOUGON
Our Lending Director; James Bougon

During the initial application stage, we will need only the basic project details, including:

  • Site address
  • Development description – unit type (semi-detached, detached etc.), size of each unit (SQFT / SQM), number of bedrooms
  • Land cost/value – any loan/mortgage associated. Already purchased or on the market?
  • If owned, name/company name land is owned under
  • Build Costs?
  • Full PP – please forward the link to approval on the council website
  • What date was planning approved?
  • GDV / Completed value
  • Loan amount required? (Land? Build?)
  • Exit plan / is the new property going to be sold?
  • When are you looking to start?
  • Estimated duration of the project
  • Have you undertaken any similar projects in the past?

You will not need to send any supporting documentation at the application stage.  It would be beneficial to link to planning approval or build costs if available, but it is not a necessity to provide you with an initial decision.

Everything you need to know:

  • A decision can be made in 24 hours. It’s simple – it will be either be a yes or a no
  • Every loan is dealt with on a case by case basis and approved by our commercial lending director; James Bougnon and company founder; Bill Hunter.
  • The term of our loans is between 1-18 months.
  • Expected profit is 20% on GDV – pre-loan costs.
  • Once we come to the end of our agreement, the property will either be sold or refinanced for let.
  • The drawdown stages are dependent on the project, client and plan. However, most drawdowns occur at the end of the month. See our valuations PDF.
  • Initially, the first drawdown will be sent from our solicitor to your solicitor. All subsequent drawdowns will be sent directly to the developer.
  • You will need to appoint a solicitor to act on your behalf. Our solicitor will raise standard enquiries within the process that the solicitor will need to respond to. But if a purchase of the site has taken place, you will likely have these items in place.

How your application proceeds

We’ve helped developers make a profit of over £50M.

Once you’ve provided the relevant documentation and submitted an application, we aim to move the process forward as swiftly as reasonably possible.

No two property developments are the same, so all applications are dealt with on a case-by-case basis and we consider the merits of your application carefully.

Our team of finance experts and chartered surveyors use their extensive knowledge of the housing market in South East England to offer you an agreement in principle as quickly as 24 business hours after you first apply.

We’ll then schedule a site visit within 48 hours to get your development project moving.

Hunter Finance is ready to take your call: telephone 01825 749721 to discuss your property development loan application or click here to apply online.


What Our Developers Have To Say

“We have found securing a competitive facility with Hunter Finance a refreshingly straightforward and easy arrangement and would not hesitate in recommending them to other London developers.”

Rob Burnham

Director, Greenplan Designer Homes

“Highly impressed by their honest approach to doing business, and following through on their promises.”

Thomas Elliot

Herongate Homes Ltd

“I have used Hunter Finance on a number of occasions. They have always provided a no-nonsense, hassle-free, first-class service.”

Tim Oliver

Connected Developments Ltd

“We don’t believe there’s a faster decision-making process than Hunters.”

Antony Payne

77 Developments Ltd

“I will only use Hunter Finance in future – no one else compared.”

Steve Halls

Trenton Homes

“My experience of working with Hunters has been very successful. Their approach is very professional and flexible. They are not like a high street bank, (thank goodness) but individuals who accept that we are the customer. Old fashion values.”

Keith Parker

Millhomes Ltd

“Although I have experience in developing property, I am developing property for the first time only in my name. Hunter finance has not only assisted and helped me through the project but has given me critical support through the difficult times. This crucial support has allowed me to achieve success in my first development. The team including their bank monitor are approachable and supportive as they wish for us the developers to be successful. I owe a lot of my success to them.”

Clive Nunes

“We have used Hunters services for our development of 8 new build houses and have been very pleased with the service provided. We have found the company to be not only very professional but responsive when needs arise. Issues or questions are dealt with by people with whom we have built a relationship with not a department. We intend to continue using Hunter Finance on a long term basis and would, and have recommended them to other developers.”

Danny Johnson

“We have successfully come to the end of a development of 3 new build houses, and Hunter Finance has been with us all the way. It was a much-delayed start, but with them having done their due diligence at the outset, their support in getting it off the ground was never in doubt (whereas a Bank would doubtless have had changes of policy and personnel during that time). Things never go entirely to plan, but they always looked for solutions with us. Because property development finance is all they do, they are very good at it. E.g. they always release each stage’s funds the same day as the valuation surveyors’ report, helping cash flow.”

Peter Champion

“I have used Hunter Finance for 2 developments in the past 18 months and on both occasions have been very pleased with the service they provide. The whole process of arranging the funding, dealing with the legal process, and drawing funds are dealt with quickly and professionally. The whole team is a pleasure to deal with and I would not hesitate to recommend them.”

Malachy Salmon

“The best development finance around, very understanding and helpful.”

Paul Reeve

Funding your property project

1. Lending Criteria

2. The Loan Process

4. How Much You Can Borrow

5. Interest Rates


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