Compare Development Finance

There are many options when it comes to development finance. We have options that include 100% funded Joint Ventures and in contrast we have options from the High Street banks offering lower loan amounts (in percentage terms) at low rates. It’s fair to say the higher the perceived risk by the lender, the higher the cost.

On a typical Senior Debt deal you can borrow the lower of 65% of the GDV, or 80% of Total Project costs.

For a Stretched Senior deal, its 75% of GDV or 90% of costs.

Our analysts will explore the proposal for you and come up with the best options for your development & circumstances.

Terms can be from 6 months to 48 months, dependent on how long it will take to build and then sell the units. Often the lender will add 6 to 12 months on to the proposed build programme, to allow sufficient time for sales.

Positive Commercial Finance will search the whole of the market and get you the best deal we can. The rate we expect to achieve will be presented very early in the analysis stage. A typical rate and the moment is around 6%, for a development facility.

Not always. We have facilitated many deals for clients where PGs are not needed

Not necessarily. Experience will open up a wider range of options, but we still have many options for clients with no experience.

To give you an initial indication of the funding options available to you, we would usually need a Development Appraisal and Cash Flow, a copy of the Planning Permission and details of your experience.

To present you with a reliable “In Principle” decision, we will need a full pack of information to complete the application and this will include, inter alia:

CV’s (or similar) for the Borrower(s), to include details of any previous developments undertaken

Personal Asset and Liability Statements for the Borrower(s)

Company details, if applicable

Copy of Sales Particulars or Valuation, if available

Planning permission details

Land registry title number for the land/ property

Financial appraisal

Confirmation of number of units, storeys, square footage and number of bedrooms in each property

Detailed build costs & cash-flow

Contractors’ details

Details of any section 106 agreement (if applicable)

Any information which may support the estimate of Gross Development Value

Solicitors’ details

Yes. Many developers set up Special Purpose Vehicles or “SPV’s” for each development. You can also borrow as an individual, partnership, LLP, Limited company or even an overseas company.