Lerwick Financial Group Ltd
The Directors of Lerwick Financial Group Ltd have over 35 years of expertise specialising in bridging loans, business loans and development loans.
What is a property development Loan?
This type of loan is used to fund a property development project or allows a property developer to move onto a new project before the previous lot has been sold. Funding is usually granted for major new build projects or comprehensive renovations.
How to get a loan for property development
We make getting a loan for property development easy with over 35 years of expertise. All you’ll need to get a loan for property development is proof of income, unless you are able to prove that the project is sufficiently profitable, previous experience if you are working with a larger project, and evidence of a professional build team. For more guidance on how to get a loan for property development, get in touch with our friendly team today!
How does property development finance work?
Property development finance works by lenders assessing the predicted value of a completed property development project. Based on the business’ eligibility, the lender will then offer property development finance in the form of a loan.
Property Development Loan
We can arrange a property development loan for site acquisition and development for all types of property development from large scale commercial or residential sites to simpler renovations and extensions.
Typical guidelines would be 70% of purchase price, 100% of build costs and a maximum 65% of the GDV – max 85% of total cost.
- Proof of income may not required if you can demonstrate the project is sufficiently profitable;
- Previous experience in property development may be required for larger projects;
- Credit problems including defaults, CCJ’s and arrears can be considered;
- Evidence required of professional build team including architects, QS etc
- For loan sizes from £1M to £7.5M with a minimum of 2 similar projects completed interest rates start at 7% per annum. For loans of less than £1M a typical interest rate would be 0.99% per month.