- The lender will pay closer attention and scrutinise the information provided for completeness and accuracy. It is important to work with a property development finance broker who can present your application in the right way.
- Development loan interest rate is likely to be higher.
- Expect loan to value of 60-65% and loan to gross development value up to 50-55% or higher with additional security.
- Up to 100% funding for construction costs.
- Terms 12-24 months.
- An inexperienced property developer should consider joint venture or a profit share agreement with an experienced developer or contractor. This will incentivise them to complete the development on time and on budget and increase the chances of getting the funding.
- A development finance lender is more likely to consider a borrower with minimal experience with a fixed price design and build contract.
