Development Finance

Funding for construction or residential projects

Our partner company Cotterell & Cotterell Commercial is experienced in devlopement finance and we are happy to make an introduction. Development finance refers to a type of funding or financial arrangement specifically designed to support property development projects.

PROJECT FUNDING finance explained

This form of financing is tailored to meet the unique needs and challenges associated with funding various stages of a development project:

Project Types

Development finance can be used for a range of projects, including residential developments, commercial properties, industrial projects, and mixed-use developments.

Stages of Development

Development finance typically covers various stages of a project, from the initial acquisition of land or property to the construction phase and eventual completion. Funding may also extend to cover costs related to planning permission, architectural design, and other pre-construction activities.

Secured Loans

Development finance is often provided as secured loans, with the property or land serving as collateral. The lender may have a legal charge over the property, giving them a claim on the property in case of default.

Loan Structure

Development finance may be structured in different ways, including phased funding based on project milestones. Lenders may release funds at key stages of the development, such as when planning permission is granted or after the completion of specific construction phases.

Interest Rates and Fees

Interest rates on development finance are often higher than those associated with traditional mortgages, reflecting the higher risks and shorter terms involved. Lenders may also charge arrangement fees and other fees associated with the administration of the loan.