At Taste Finance we partner with businesses across the South-West who are looking for financial solutions including commercial short term, medium term or long term finance, commercial mortgages, or property development finance.
We have developed relationships with a large number of lenders and work across a broad spectrum of business industries to provide tailored solutions to businesses of all types.
It is a form of financial capital used in the process of creating and developing real estate projects. This type of financing is often used to cover the costs associated with the construction, renovation or expansion of commercial or residential properties. Property development finance typically involves a variety of stakeholders such as banks, equity investors and venture capitalists who provide long-term funds for large-scale projects. These funds are then used to purchase land, build and improve facilities, hire personnel and purchase building materials.
Property development finance is an intricate process that requires an in-depth understanding of the economic dynamics of the property market. Generally, it functions through a combination of debt and equity financing to provide capital for large-scale property projects. The debt component can be secured or unsecured, with the former typically relying on a loan from a bank or other financial institution. Equity financing typically involves either a direct investment by the developer or external investors such as venture capitalists or angel investors. Property development finance is a common practice in the property industry and can be utilized by developers to cover the cost of building commercial, retail, industrial and residential properties. It can also be used to fund infrastructure upgrades and renovations with the aim of improving property values.
For ground up development finance can be raised as a percentage of the GDV of the project, and will be used to cover the costs of materials and contractors
Development finance can be used for large scale conversions which often comprise conversion from large commercial building into multiple residential units. Smaller property conversions are usually facilitated using a bridging loan.
Joint Venture Development finance is often used when 100% development finance to cover the costs of land purchase, materials and labour. In return the lender will receive a percentage of the profits, and interest on the loan.
As well as using development finance for the construction and contractors costs, some lenders will also lend a percentage of the cost of the land, if purchased for the development which is normally available if planning permission is in place.
Allows you to raise capital on development
Interest is often rolled up and paid at the end
It is a short term loan which means you wont be tied down to paying interest over a long period
Can be used to cover the cost of construction including materials and contractors
Under certain circumstances it may be possible to obtain 100% development finance
The application process is not always simple as lenders can often require extensive information relating to the development and planning.
You may feel pressured to complete the development in order to repay the loan on time
You may incur additional expenses such as exit fees and arrangement fees.
Most lenders will only look at lending to experienced property developers or those with a proven track record
Most lenders will only lend a percentage of the GDV which means the developer will have to raise the additional funds
If you are looking for finance solutions for your business and would like to speak to one of our team, then please contact us using the form below.
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