The most common use is for the development of residential housing schemes (including Private Rented Sector, or “PRS” schemes, and Affordable Housing or Social Housing schemes) of any size, in any location in the UK. In addition our lenders can also fund mixed-use schemes, commercial schemes, student accommodation (including Purpose Build Student Accommodation schemes, or “PBSA” schemes), hotels & leisure, retail, industrial schemes, Permitted Development Rights schemes, and so on.

We will assist you in structuring the loan in the most cost effective way by ensuring that you draw the funds down in tranches to interest, but ensuring that you do not have cash flow issues or delays in your project.

Our experts analyse your detailed appraisal, reviewing your costs for the project including professional fees and then recommend a solution that best suits your needs from our panel of lenders includes High Street banks, Development Finance institutions, specialist lenders, family offices and private individuals.  

We can facilitate the most appropriate property development finance options for Senior Debt, Stretched Senior Debt, Mezzanine, Equity and even Joint Venture finance. So, whether you are looking for the cheapest rates, or the highest leverage, we can help.

There are many variants across such facilities, including the Loan to Value (or Loan to Gross Development Value) and Loan to Project Costs which determine exactly how much a lender can provide, the costs of the facility (and any up-front or application costs), and the on-going administration of the facility such as Project Monitoring and facility draw-downs. In addition, other factors such as Personal Guarantee (“PG”) requirements, speed of transacting & professional fees can really separate one lender from another.  That is why it is important to use the services of a Company like ours to successfully navigate your way through your finance requirements.

A very experienced developer with over 30 projects in the past is on a rapid expansion program, not only in projects but average project size from GDVs of £12m to £26m. The client had access to many funding lines but this 68-unit project had been perceived to be too much exposure for their current funding lines. The developer also wanted a maximum contribution of 10% on the £17.92m acquisition and build, with a 30 month build and sell scheme. The client had an existing relationship with a mortgage broker that could not achieve the client’s goal.

Developer Loans found a solution at 85% Senior debt and junior debt was arranged by the Developer directly, to 90% LTC. At the last minute the junior debt (mezzanine funding) was pulled 4 weeks before funding and Developer Loans were again put to the test to arrange additional finance. We managed to arrange 2 alternative solutions and eventually we helped negotiate senior funding, priced at 0.7% day one, 7.25% per annum and 1% exit fee at 92% LTC with one lender. The blended rate was below the Developers expectations and the deposit contribution was less than originally committed. The client is now committed with other projects with the SMT at Developer Loans.

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