Property Development Funding Criteria

Property Development Criteria and Interest Rates for UK Businesses with a good credit record.

The lenders criteria for advancing a loan and the respective rates vary considerably from case to case, however, as a general guide we would expect to obtain the following:

Development Finance Criteria:-

Loan size £100,000 - £5m
Term up to 18 months
LTV 60% Land/Site valuation
100% of build costs
Valuation by Lenders surveyor. Valuer will monitor costs, timetable and cashflow.
Stage Payments are usually released on monthly certification.
Sites to have planning permission in place before drawdown of build cost loan.
As a guide, projects should show a minimum profit of 25% profit on costs.
High Street Bank Interest Rates 3 – 4% over Base.
Lenders agreeing 100% build costs 7% pa and 2% per month.
Arrangement Fees 1 – 2%

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Use our Online Enquiry Form on the right hand side of this page or Contact Us on 0800 0735353 and let our professional team find you a competitive UK Property Development Funding Deal.