How Development finance will help you

If you are a property developer you’ll know that finance is key to keeping things running smoothly. If you are approaching your first project, you may need a little guidance as to how these funds are accessed in the first place. Development finance is the solution provided to unlock funds to build, convert, or refurbish a property that you are then looking to sell.

There are a whole host of lenders who are willing to assist with development finance. Using a finance broker will allow you access to the best deals on the market and save you the time of hunting these down yourself. An experienced broker will understand your aims and know exactly which lenders to approach to achieve your goals.

Development finance sees you being approved for a set amount of funds. An initial block of funds is released to ensure that the project is secured and can get underway. As you hit certain milestones along the way, further funds are released to ensure that the project keeps moving forward. It is possible, with the right lender, to have 100% of all build costs funded this way. 

When it comes to repaying development finance, this is usually achieved at the end of the project. This could be by the sale of the property that has been developed. Where this is not the case, it is usually possible, by using a finance broker, to refinance the deal and repay the loan. As development finance is short-term, interest is kept to a minimum and you will only pay interest on the loan amount that you have actually drawn on and used.