Whether you’re looking for finance to buy and refurbish a property then sell or keep, or undertake a new build project, our team can help you navigate the complex world of development finance.
It is imperative to any successful development that the finance is structured in the most advantageous way for your scheme, and understanding your goals and needs is at the forefront of what we do. We don’t just look at the immediate project but also make sure that your goals are met for the coming years. In order for developers to grow, they need capital to stretch further to not miss out on opportunities as they arise. Often we help developers who believe they only have enough capital for one project, but when we work through the overall situation we can provide finance for a further 2 or 3 at the same time.
You may be looking for the highest leverage possible, the lowest rate, or the flexibility of drawing down at certain times.
Some developers may need investors to assist with the equity requirement, or you may not wish to include other investors and as such require the debt element to go further.
We have access to over 100 development lenders allowing us to structure deals which can include the following:
- Senior Debt
- Stretched Debt
- Mezzanine Finance
- Equity Finance
- Joint Ventures
Senior and stretched senior debt is the largest part of the financing piece which is the first charge lender.
On top of this, you may require more debt which can be achieved with mezzanine finance which is secured by way of a second charge. Although this may seem expensive, this is sometimes cheaper than taking on board another investor where you need to split the profit and sometimes pay a coupon in addition.
Equity finance can be arranged in certain circumstances where you require a larger amount of equity than you currently have, allowing the deal to happen. You can expect to split the profit of the project and pay a coupon on top (in some circumstances).
Joint ventures are superb ways of partnering up with landowners to undertake developments sometimes with no equity going at all, apart from the cost of the valuation and legals. If you’d like to understand more about how this would work, please do get in touch.
All projects and financing will be dependent on your experience, your team, and your net worth.
Dave has assisted me with finding appropriate mortgage products for my needs for the last 8 years – including finding something that worked for me while living abroad, buy to let and re-mortgaging soon after I returned to the country. Dave is not only extremely knowledgable in his field, he takes the time to go through every aspect of the product relevant to me and is always easily contactable. Excellent service I have happily recommended to numerous friends and family members.