Mar 30, 2021

100% Property Development Finance

If you don’t have the readily available cash/assets to fund your next development but know that it’s a project not worth missing out on... then this product is for YOU!

We have two lenders who will fund 100% of the acquisition and build costs of your development!

Key Details:

• True 50/50 profit share - no fixed exit cost. The profit share is with the borrower after total GDC (including finance costs). When all the units have been sold, the remaining profit, after all borrowings and costs have been paid, is shared 50/50 between the developer and the lender.

• No personal guarantees

• No valuations

• No borrower cash input

• Fully funded acquisition and build

• One of our lenders ask for a minimum debt size of £1m - this requires a minimum of 30% return on GDV

• The other lender asks for a minimum GDV of £10m - this requires a minimum of 27% return on GDV with a maximum facility of £2.5m GDC

• Maximum term of 15 months

• Interest charged at 1% pcm - this is charged on funds drawn

• The lender who asks for a minimum GDV of £10m typically likes major inner-City developments of multi-unit apartment schemes.

• The other lender who asks for a minimum debt size of £1m is happy to look at all developments as long as the 30% return is there.

• The borrower needs to be an experienced property developer.

How it works? The property will be held in an SPV owned by the developer, with funds lent to the SPV for 100% of the costs of the scheme.