Property Development Finance

At 1 Stop Finance, we offer Property Development finance for new build projects, conversions of an existing property into multiple units or refurbishment of an existing property whatever your requirements we can arrange your development loans with speed and efficiency.

We have a proven track record of working with both experienced developers and also first-time developers in order to arrange development loans. Indeed many of the first time developers we have helped arrange finance for over the years, have now gone on to larger schemes thanks to our initial efforts and are now considered fully experienced property developers.

We are also successful in arranging finance for experienced developers who are struggling with their own banks, it could be that their own bank is funding one project and not keen on any further exposure, or that they are just not keen to offer to fund the development, 1 Stop Finance are experts at arranging finance in all of these scenarios.

We compare the whole of the market to ensure we get a tailor-made solution that fits your needs exactly, we also use our years of expertise to discuss your requirement and then place you with a lender based on your circumstances. With any development project, you need to know that your funding is secured before starting work.

Once you have commenced works on site, it can be very difficult to arrange additional funding and even then it is usually raised with a bridging loan. Property Development Finance should always be put in place before any works are started.

Before any funding is released the lender will need to see that planning is in place and that all of the outstanding conditions have been complied with wherever possible. Obviously, things like materials such as bricks and roof finishes can be dealt with at a later stage but if the conditions can be dealt with prior to the loan being released then a lender would expect them to have been dealt with.

A Lender would also need the following items

Planning Permission

A copy of any planning permission that has been granted on the site, including outstanding conditions, it would also have to be full planning permission, lenders would not consider lending against an outline approval. In the past an outline approval could be just a couple of squares on a plan and that could be granted as outline planning, however in recent years this has changed a lot and for an outline permission you have to supply as much information as a full application so there is not much point in doing an outline application at all.

Appraisal of the project

In order to evaluate your project for development finance you would need to provide an appraisal and cash flow the appraisal should show a list of all of the costs that are associated with the development and include things like, architects fees, finance charges, construction costs, selling fees, warranties and everything that is likely to be spent over the life of the project. In addition they will want to see a detailed cash flow, showing where and when the cash input is required, typically this will show site purchase, warranty costs and then go through various stages when cash will be required, these would include Foundations, Wallplate, roof, first fix, 2nd fix and then completion.

Builder/Construction

When applying for property development finance a lender will also want information on who is going to be doing the construction works, if you are a builder you will have to demonstrate that you have completed projects before to the lender’s satisfaction. If you intend to employ a builder to carry out the works on your behalf then you would need to employ a contractor on a fixed price contract, with projects of less than £200k these would not be a requirement.