Commercial development loan features

Development Type  – New builds, conversions, or refurbishments in locations of strong demand

Commercial Tenants  – Office buildings, retail units, Industrial properties

Minimum Loan Amount  – £500,000

Maximum Loan Amount  – £20,000,000

Maximum Loan to Value (LTV) – 70% including fees and interest (higher LTV with additional security)

Maximum Loan to Gross Development Value (LTGDV) – Up to 70% gross with pre-let, strong covenant or committed pre-sales

Build Costs – Up to 100% on stage payments paid in arrears upon QS certification

Loan to Cost (LTC) – Up to 85%

100% Development Finance – Available with additional security

Loan Term – Typically, 12-36 months

Security  – First charge. Second charge; directors personal guarantees; mortgage debenture on a case by case basis.

Arrangement Fees – 1-2% of gross or net loan amount

Exit Fees – 1-2% of gross, net loan amount or GDV

Development finance rates – From 4.5% per annum (on drawn balance)

Monitoring Surveyor  – A Quantity Surveyor to be appointed to produce the initial due diligence report to include an assessment of build costs, the professional team and project viability

Repayment – From refinance onto term loan or sale of property

Lenders – As a specialist property finance broker, we access the whole of market

Planning permission – Full planning consent required

Pre-drawdown conditions – Fully/significantly pre-let or pre-sale required

Contact us to discuss your borrowing requirements

Call us on 020 8988 1102 

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