Property development financing is a very useful tool in helping to plan and execute your dream build.
Experienced developers, builders or first-time developers can borrow up to 100% of the cost of construction. However, it is important to take into account the associated costs of development finance.
There are various fees, charges and general borrowing costs associated with development finance loans, and the prices vary from one lender to the next.
There may be additional fees for architects, project managers, quantity surveyors or solicitors, which you will need to consider when applying for a development finance loan.
Hunter Finance is a private lender and will help you to access the best deal to suit your needs and your budget.
We understand that every build is important, be it a large housing development or a restoration, which is why we offer honest, impartial advice and guide you through each step of the development financing process.
We aim to be as transparent as possible when arranging development finance for our customers, which is why we clearly outline any upfront costs.
An initial valuation of the project called a development viability report will be completed by our surveyor.
This typically includes a projected valuation of the completed project to help lenders to decide on the loan amount.
We don’t make a profit on these reports, as the fee is paid directly to our surveyor.
Some properly development finance lenders charge fees for submitting an initial application or seeking advice.
UK Property Finance does not charge these fees.
Our solicitors charge a fee, dependant on the loan size, for providing the legal assistance necessary to set up your loan.
Our fees are typically lower than other lenders, as we have draft contracts in place.
The usual arrangement fee is calculated at 1-1.5% of the net loan amount.
By choosing Hunter Finance as your development finance provider, you will avoid certain fees that are imposed by banks, such as the telegraphic transfer fee, or TT fee.
This is imposed by banks handling the money transfers on behalf of lenders.
As we only lend from our investment fund, there are also no broker’s fees, saving you on average 2-3% of the loan value, or £20,000 on a £1 million property loan.
Check out our lending criteria tool to see how much you could save with us.
We offer an obligation-free initial consultation and can answer any of your questions regarding potential development costs.
To arrange a consultation, contact us today.