Development finance by design
If your client is looking for finance to fund residential development projects or change of use projects, converting properties from commercial to residential, talk to us. We work in partnership with intermediary only lenders, who appraise each application on its own merits, so we can offer completely unique solutions.
For new and existing property developers
Property developers have unique needs because they are likely to need development finance for several projects running in tandem. Having provided this service for multiple clients in the past, we know which of our lenders have a track record of being comfortable with funding developers, including those who are new to residential development or who have limited experience.
Our speed is your gain
Traditional high street lenders are averse to offering this kind of finance – whereas our track record in specialist development finance speaks for itself. Our unique process enables us to be fast and efficient, which means a solution is quickly found for your client. And the sooner the funding application is approved, the sooner you can start receiving commission.
Proven process
We will be involved as closely with your client as you would like – whether directly or through you. We invest time in understanding their exact requirements and sift through our network of lenders to seek specific terms. Once our proposal is agreed we will formally apply on your client’s behalf: instructing a valuer; a monitoring quantity surveyor; and beginning the legal process, including the initial loan draw down to purchase the site or start the works.
Key features
Development Finance Summary
Property types
- Residential property development.
- Single residential units.
- Multiple residential units.
- Commercial to residential.
Client types
- New residential developers.
- Experienced residential developers.
Client scenarios
- Change of use.
- Conversions.
- Renovations.
FAQ’s
What does my client need in place to begin arranging development finance?
Whether your client already owns the land or has identified a potential project, as long as they can provide: the purchase price or costs; costs of building/conversion/renovation works; and an end value – they can begin the process.
Does my client need a cash reserve to be eligible for a development loan?
In most cases the fees can be added onto your client’s loan, rather than needing to be paid via a cash reserve.
Does my client have to have planning permission before applying for development finance?
Some lenders will fund developments without planning permission and will factor in time to allow your client to obtain planning or change of use permissions. While the loan is likely to only represent 50% of the land’s value, further funds can be raised once planning permissions are in place.
What fees can my client expect?
Projects are assessed on a case-by-case basis with different fees with different structures being charged but fees usually include: set up fee, interest, professional costs, contingency and exit fee.
What can my client expect in the form of drawdowns?
During the course of a development, the principal site contractor will expect pre-agreed, usually monthly, payments. Subject to lender approval, the developer will draw down from their lender agreed funds to pay for such upcoming works in advance.
Want to know more?
Or to talk to us call
Our Development Finance expert is:
Luke Egan CeMAP
Luke’s career in the world of finance began when he joined Woolwich/ Barclays in 2005 at the age of 19 as a customer service agent within a year became a mortgage specialist and gained CeMAP 1,2 and 3. After 9 years with Barclays, Luke left to work for Pure Commercial finance (now Pure Property Finance) in 2014.
Post-recession the specialist property finance sector was growing as people looked for alternatives and more options for their projects. This intrigued Luke and presented a new challenge, especially as a new broker looking to establish themselves. He quickly realised this was the sector for him and describes every day as “Being completely different with a weird and wonderful section of deals and securities that certainly kept you on your toes”. Pure quickly became established as one of the ‘go to’ brokers, under the stewardship of Luke as ‘head of specialist property finance’ and was recognised with a number of awards including at the prestigious and industry leading Bridging and Commercial Awards: ‘best bridging broker’, ‘best development broker’ and finally ‘best commercial broker’.
One of Luke’s core strengths is speed, which is a key requirement for bridging related deals. He quickly identifies the key points in a deal which allows him to package appropriately; he is also quick to highlight any issues up front and provide mitigants, to ensure everyone is comfortable with the deal. Being able to react quickly and communicate effectively to minimise any hold ups is essential as only a few hours are available in which to get everything in place for the next stage of the application in some cases. Another of Luke’s key strengths is attention to detail, which may seem at odds with working quickly but that is the real skill of specialist finance - combining the best of both worlds makes the best packaging broker.
When he isn’t working, Luke’s hobbies are most sport, he enjoys watching Welsh rugby and he also supports Manchester United.
Luke Egan CeMAP
Luke’s career in the world of finance began when he joined Woolwich/ Barclays in 2005 at the age of 19 as a customer service agent within a year became a mortgage specialist and gained CeMAP 1,2 and 3. After 9 years with Barclays, Luke left to work for Pure Commercial finance (now Pure Property Finance) in 2014.
Post-recession the specialist property finance sector was growing as people looked for alternatives and more options for their projects. This intrigued Luke and presented a new challenge, especially as a new broker looking to establish themselves. He quickly realised this was the sector for him and describes every day as “Being completely different with a weird and wonderful section of deals and securities that certainly kept you on your toes”. Pure quickly became established as one of the ‘go to’ brokers, under the stewardship of Luke as ‘head of specialist property finance’ and was recognised with a number of awards including at the prestigious and industry leading Bridging and Commercial Awards: ‘best bridging broker’, ‘best development broker’ and finally ‘best commercial broker’.
One of Luke’s core strengths is speed, which is a key requirement for bridging related deals. He quickly identifies the key points in a deal which allows him to package appropriately; he is also quick to highlight any issues up front and provide mitigants, to ensure everyone is comfortable with the deal. Being able to react quickly and communicate effectively to minimise any hold ups is essential as only a few hours are available in which to get everything in place for the next stage of the application in some cases. Another of Luke’s key strengths is attention to detail, which may seem at odds with working quickly but that is the real skill of specialist finance - combining the best of both worlds makes the best packaging broker.
When he isn’t working, Luke’s hobbies are most sport, he enjoys watching Welsh rugby and he also supports Manchester United.
Luke Egan CeMAP
Luke’s career in the world of finance began when he joined Woolwich/ Barclays in 2005 at the age of 19 as a customer service agent within a year became a mortgage specialist and gained CeMAP 1,2 and 3. After 9 years with Barclays, Luke left to work for Pure Commercial finance (now Pure Property Finance) in 2014.
Post-recession the specialist property finance sector was growing as people looked for alternatives and more options for their projects. This intrigued Luke and presented a new challenge, especially as a new broker looking to establish themselves. He quickly realised this was the sector for him and describes every day as “Being completely different with a weird and wonderful section of deals and securities that certainly kept you on your toes”. Pure quickly became established as one of the ‘go to’ brokers, under the stewardship of Luke as ‘head of specialist property finance’ and was recognised with a number of awards including at the prestigious and industry leading Bridging and Commercial Awards: ‘best bridging broker’, ‘best development broker’ and finally ‘best commercial broker’.
One of Luke’s core strengths is speed, which is a key requirement for bridging related deals. He quickly identifies the key points in a deal which allows him to package appropriately; he is also quick to highlight any issues up front and provide mitigants, to ensure everyone is comfortable with the deal. Being able to react quickly and communicate effectively to minimise any hold ups is essential as only a few hours are available in which to get everything in place for the next stage of the application in some cases. Another of Luke’s key strengths is attention to detail, which may seem at odds with working quickly but that is the real skill of specialist finance - combining the best of both worlds makes the best packaging broker.
When he isn’t working, Luke’s hobbies are most sport, he enjoys watching Welsh rugby and he also supports Manchester United.
Luke Egan CeMAP
Luke’s career in the world of finance began when he joined Woolwich/ Barclays in 2005 at the age of 19 as a customer service agent within a year became a mortgage specialist and gained CeMAP 1,2 and 3. After 9 years with Barclays, Luke left to work for Pure Commercial finance (now Pure Property Finance) in 2014.
Post-recession the specialist property finance sector was growing as people looked for alternatives and more options for their projects. This intrigued Luke and presented a new challenge, especially as a new broker looking to establish themselves. He quickly realised this was the sector for him and describes every day as “Being completely different with a weird and wonderful section of deals and securities that certainly kept you on your toes”. Pure quickly became established as one of the ‘go to’ brokers, under the stewardship of Luke as ‘head of specialist property finance’ and was recognised with a number of awards including at the prestigious and industry leading Bridging and Commercial Awards: ‘best bridging broker’, ‘best development broker’ and finally ‘best commercial broker’.
One of Luke’s core strengths is speed, which is a key requirement for bridging related deals. He quickly identifies the key points in a deal which allows him to package appropriately; he is also quick to highlight any issues up front and provide mitigants, to ensure everyone is comfortable with the deal. Being able to react quickly and communicate effectively to minimise any hold ups is essential as only a few hours are available in which to get everything in place for the next stage of the application in some cases. Another of Luke’s key strengths is attention to detail, which may seem at odds with working quickly but that is the real skill of specialist finance - combining the best of both worlds makes the best packaging broker.
When he isn’t working, Luke’s hobbies are most sport, he enjoys watching Welsh rugby and he also supports Manchester United.