Call Now: 0800 138 6001 - Open 24/7

Call Now: 0800 138 6001 - Open 24/7

Compare Development Finance

Enter Your Details.

Get A Quote Now!

BWG Finance offers Property Development Finance for the construction, renovation, restoration, etc. of any type of Property. Development Loans are from £50k. We work with market-leading lenders to offer unrivalled terms, to our clients. Both first time and experienced developers.

Compare Development Finance

BWG Finance offers Property Development Finance for the construction, renovation, restoration, etc. of any type of Property. Development Loans are from £50k. We work with market-leading lenders to offer unrivalled terms, to our clients. Both first time and experienced developers.

Property Development Finance

Over the last 15 years we have gained a reputation for our experience in the industry and getting deals agreed where others had failed. Both directors have extensive knowledge of the property development sector and have built out extensive schemes throughout the UK, this in-depth knowledge means we have a better understanding and expertise in putting your case forward and getting the deal agreed.

Thanks to this and the broad range of lenders we work with, we can offer an extensive range of development finance products, depending on the client’s requirements.

No matter if you have just started the project or are close to the end, we can help provide additional funds to get the project off the ground or keep it running.

As well as residential Bridge Loans, we are also experts at arranging Development Finance on any type of development project including single plots, housing schemes, flats, and any type of commercial project.

As a totally independent finance broker, we will search all the available lenders to get you the very best rates and terms for your project.

To ensure we can provide you with the best development loan terms, we will have an initial discussion to determine your objectives, find out what the development is, how much cash you have to put in etc, as experienced property developers, we can quickly determine which lenders would be appropriate and what the best rates would be for your project.

Obtaining a development loan for property development is a specialist area and you need a broker who understands your requirements and can work out the best lenders and more importantly which would be best for your project.

We only work with reputable lenders who we have financed deals with before and as one of the leading brokers in the UK, we are able to get preferential rates on the Development  Loans we arrange.

Developing can be a difficult process, so we aim to make the process as simple and hassle-free for our clients as we can.

If you are a first-time developer we can guide you through the process, including helping you with putting your project appraisal and a cash flow together,  these are things that lenders would expect to see and expect to look professional.

We put the time and effort into each development loan no matter how small or large, many of our existing clients came to us with their first deal years ago and we have seen them develop and grow their businesses alongside ours.

If you are an experienced developer, we will talk your language, we have been arranging development finance for many years now and many of our clients come back to arrange their new funding with us, trusting us to arrange the best deals whilst they do what they do best property development.

Property Development Finance is used by property developers to help fund the development of property and land, these would include houses, flats and almost any commercial property, most lenders if funding a commercial development would need to see a clear exit strategy i.e sale in place or agreed tenant in place with a lease agreed. On a semi-commercial project such as flats with a commercial ground floor, then they would expect the commercial element to be substantially less than the residential parts.

Development Loans are available for new, build, refurbishment and conversion of existing properties into multiple dwellings, we can also look to obtain funding for land without planning if there is the potential for a planning gain once planning as approved. If you intend to develop the land once you have your planning then any additional uplift in the land value could be counted towards your input.

Lenders would look to see around 20-25 % profit on the project based on your costs also if you have bought under value then the added value can also count against any cash that you would put into the project.

We can arrange development finance on land and property anywhere in the UK, note we cannot arrange Development Loans for non-UK projects. The lenders we work with are based all around the UK  as each lender has their preferred geographical locations, we can obtain the best rates and deals wherever your development is in the UK

Development loans are always secured against the land or property that is being developed and we can get up to 90% of all costs funded including the land element, subject to it being no more than 70 % of the gross development value.

It basically works like this if the costs are £200,000 and the GDV is £250,000, then against cost’s you could get Development Finance of £180,000 but with a GDV of £250,000 then 70% of GDV would be £175,000 so you would get the lower of the two.

Property Development Finance Arrangement & Exit Fees

Lenders typically charge an arrangement fee which is based on the development loan amount this is usually 1-2 %  and is deducted from the initial loan when it is drawn down.

Exit Fees

Exit fees are only really charged by high street banks and they take it on the GDV (gross development value). You have to be careful with this one as they will show a lower interest rate but then get it back by including an exit fee. Look at this example

A £300,000 Development Loan with GDV of £400,000 if your arrangement fee is 1% then a £3,000, fee is payable, most specialist lenders only charge an arrangement fee

High Street Banks will charge you an exit fee as well usually 2%  so you are looking at another £8,000 taking it to  £11,000 total.

Interest

Development Finance interest is charged on a daily basis on the outstanding amount, it is not charged on the loan amount, although in the past some lenders used to charge a non-utilisation fee however this rarely seen now. So it works as follows.

You draw-down the loan against the land or property let’s say £200,000 you then start paying interest at the agreed rate on £200,000 if you then have a further drawdown of say £50,000 for works complete you are then paying interest on £250,000 and so on, in effect you will only ever be paying interest on the full loan amount when you have finished the development.

Brokerage Fees

Most brokers charge a 1% fee for arranging your finance, we do not charge any fees only in exceptional circumstance, due to the volume of business we give to lenders they pay our fees, we only get paid by them when you get your first drawdown.

Valuation Fees

Valuation fees are payable to the surveyor who carries out your valuation. You will find that a lender will have a panel of Surveyors who they rely on to value the land or property they are using to secure their loan.

Fees for valuations can vary enormously so always ask for quotes from all of them, before instructing one.

QS Report

Once you get above £1,000,000 lenders would likely want a quantity surveyor, to go over your costs and profit projections, this is to give the lender comfort that everything stacks up and your development costs are achievable.

Legal Fees

When you take Property Development Finance all lenders expect you to pay their legal fees as well as your own. They generally use the same solicitors who will give you a quote as to what the costs are likely to be. You will have to pay their legal fees in advance or get an undertaking from your solicitor to say that they will be paid. This means your solicitor is guaranteeing they will be paid on your behalf.

Monitoring Fees

On larger development’s you will also be charged a monitoring fee every time the surveyor goes out to do a valuation to enable you to have a drawdown on your loan this usually £500-£1,000 for each visit, on smaller loans this would not usually apply.

Property Development Loans & Finance

  • Same day decision in principle

  • Loans up to 90% of all costs

  • Terms from 1 month up to 24

  • Up to 100% LTV with additional security

  • We compare all UK Lenders

  • Minimum loan is £50k no maximum

  • The minimum age is 18 with no upper limit

Property Development Loans & Finance

  • Same day decision in principle

  • Loans up to 90% of all costs

  • Terms from 1 month up to 24

  • Up to 100% LTV with additional security

  • We compare all UK Lenders

  • Minimum loan is £50k no maximum

  • The minimum age is 18 with no upper limit

Start Here…

Compare Rates Now!

Enter Your Details.

Get A Quote Now!

We compare all of the UK’s top Property Development Finance lenders for you, with over 100 to choose from you need to know you are getting the best rates and deals.

Compare Rates Now!

We compare all of the UK’s top Property Development Finance lenders for you, with over 100 to choose from you need to know you are getting the best rates and deals.

Start Here…

Call us 24/7: 0800 138 6001

BWG Finance, Rex House 4-12 Regent Street, London, SW1Y 4PE. Tel: 0800 138 6001

Top 10 Finance Ltd trading as BWG Finance is authorised by The Financial Conduct Authority (FCA) no 725234 The FCA Think Carefully before securing debts against your home. Your property could be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Data Protection Act (1998). Registration No: Z2861884 Company Number 06261373 BWG Finance Rex House 4th Floor 4-12 Regent Street London SW1Y 4PE (c) 2007 - 2018 BWG Finance. Sitemap - Privacy Policy - Reviews - Contact BWG Finance

Property Development Finance - Bank of Scotland Property Development Finance - Barclays Property Development Finance - Halifax Property Development Finance - HSBC Property Development Finance - Lloyds Property Development Finance - NatWest Property Development Finance - RBS Property Development Finance - Santander Property Development Finance