We have a broad panel of diverse lenders with whom we have excellent relationships with. As such, we know who to approach for obtaining the most favorable terms which meet our client’s circumstances and requirements.
Recently there has been a number of specialist lenders expand their products to include Development Finance, which means that there is greater competitiveness within this market. This has to lead to greater complexity within this field, resulting in the need for an experienced broker like Reliance Mortgages Ltd, who have access to them, to secure the best deal for a client. The properties do not have to be residential, as we can provide development finance for commercial properties, whether it be from a plot of land or developing an existing property.
Whilst experience of the client is key for a number of lenders, we can also package an application on a Joint Venture basis where this is required.
Typically lenders will lend up to 75% of the Gross Development Costs, providing 100% of the build costs. It is important to compare all the costs associated with the finance, as lenders will charge an arrangement and exit fee. That exit fee may be on the finance provided or the Gross Development Value. Typical rates are 7% pa, however, for the experienced developer, this can be considerably lower.
Think carefully before securing other debts against your home or your Commercial Property