So let's say you've found an unmodernised property in our Sourcing section, done your due dilligence using the Plot Map and the Development Calculator, and now you want you to know whether you can raise finance to demolish and rebuild the property with 50% extra square footage.
Now's the time to open up our Finance Finder tool – the most comprehensive database of property-focussed lenders operating in the UK.
Open up Finance Finder in the Evaluate menu, and select Development finance:
You need four pieces of information to get started:
- The full postcode of the project
- Loan size (the total amount of borrowing required)
- Total cost (the total cost of the project, including land, fees, construction)
- The Gross Development Value of the project once completed
The loan size should be smaller than the total cost, as lenders expect you to fund at least part of the total cost yourself. And the lenders will want to see a healthy profit margin between total cost and GDV.
Once you've entered all the information, click 'View finance options' and you'll see the results table shortly:
Our database of lenders has been filtered to ensure they offer finance in the area of the UK your project is in, as well as that you meet their criteria for Loan to Cost (LtC) and Loan to GDV (LtGDV) ratios as well as minimum and maximum loan value.
The table displays all this information, as well as all-important figures of headline interest rate and setup and exit fees.
As an advanced feature, you can filter by funding type (senior debt, stretched debt or mezzanine).
Remember, the exact interest rate the lender will offer you will depend on your circumstances, experience level and the nature of the development project.
Click 'Check eligibility' if you'd like a dedicated advisor from our partner b2bfinance.com to help you investigate the right finance options for you.