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Development Finance
What is Development Finance?
Development finance is a form of short-term funding that provides an injection of cash to assist with the construction or refurbishment of residential and commercial properties. It’s a fairly broad category that covers term loans, mortgages and mezzanine finance.
How to Finance a Development Project
When applying for development finance via PBFC UK, you will need to bring together a professional team, this will usually entail an architect, structural engineer and planning consultant. This helps us lend credibility to your loan application and will also be needed for your development plans.
Lender requirements can vary but the following are basic requirements that are needed by most lenders:
A detailed cashflow
Detailed schedule of works with the building contractor
Detailed timeline for development plans – week by week
Confirmation of planning approval with conditions that need to be satisfied before you can start the build, and lenders will need to confirm that this has been met before releasing any funds to the client.
We can help developers get the right finance for UK residential and commercial projects.
Development finance from £50,000 to £50m
Market leading rates
Finance options for England, Scotland, Wales and Northern Ireland (We can also source finance for projects in Ireland)
International development funding from £5m
Loans up to 100% of gross development finance cost
Development exit funding for projects near completion
Finance with no exit or early redemption fees
Refinance for projects behind schedule
Options for First Time Developers
Finance solutions for uninhabitable properties.
Conversion finance e.g. permitted developments, Care Home Conversions
Joint venture finance options
2nd charge options
Finance for major home renovations
Terms up to 36 months
Hunter Style Revolving Credit Facilities for experienced developers
Complex cases always considered
Finance for a variety of ownership structures including multiple SPV's, Offshore SPV's, UK based trust structures, overseas trust structures.
Finance for new build, conversion or refurbishment developments including mixed use and student accommodation
We can help source finance for land, commercial to residential conversions, assets such as care homes, barn conversions, places of worship, petrol stations, fisheries, air rights (with acceptable security) and charities
100% Development Funding
The Basics
Our Lenders like to work with developers who have good experience and a solid track record.
Projects are multi-unit residential new build or conversions under *PDR in the mid-price bracket.
Project length should be no more than 24 months.
Full planning permission must already be in place.
GDV target of £5 million – £15 million. GDV per unit should be no more than £500K.
Our lenders work to ROCEs (Return On Capital Employed).
Profit is divided between joint venture partners, typically in the developer’s favour.
The lender will hold the asset in a brand new Special Purpose Vehicle (SPV) owned by
The Benefits
One-stop-shop solution. One set of legal fees, one relationship, one monitoring surveyor. All costs amalgamated into one – saving you time and cost.
It doesn’t tie up your funds meaning you can turbo-charge your profits through multiple deals.
Team of experts to support you from legals and surveying, to marketing and administration.
Allows you to take on more projects with all the synergy and profit benefits.
No need to service debt at any stage, all interest can be rolled up to the end of the project.
Option to take project management fees.
One joint venture funder covering all the costs, removes the need for inter-creditor agreements and keeps things simple.
