The development finance is a short-term bridging loan which helps you to develop and purchase commercial property and also residential property. They are of two types, non-status, and status development loans. Some things to consider for development loans are initial cost, land value, etc. The highest loan that you will get is 70 percent of the actual value of land and 100 percent of the build cost. The payments are made in stages. It is provided for development projects like refurbishment, conversion, and restoration.
Some areas where development loans are offered are given below.
- Residential development – This loan will help people who want to turn greenfield sites into flats and residential houses. It is also good for the conversion of large homes in multiple occupancy houses. It is sourced by the property value.
- Commercial development and semi-commercial development – This loan can be obtained for many reasons like short-term cash flow, tax bills, and stock purchase. It is based on the mortar value of property i.e. building security value. The provider of the financial services has contact with banks that understand your needs and offer the best development finance and funding solutions.
- Financial structure – This depends upon the value of the property, not on the customer’s past history or credit. The lenders will make sure that the project should have sufficient funds to complete the process and it makes good profits without disturbing the cash flow.