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What is property development finance?

Property development can be residential or commercial. It can be buying buildings for renovation or extension, or buying land and undertaking new construction.

Because property development covers such a diverse range of activities, there are often specific types of finance or specific lenders catering for the project in question. 

Also, the experience of the property developer is likely to be a factor that impacts on the decision to lend.

COMMERCIAL MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY 

 

What type of finance is available for property developers?

The type of finance you need is likely to depend on the level and type of development being undertaken – light refurbishment, extensive renovation or new build from the ground-up – whether it’s a commercial or residential development, and how long the project is expected to take to complete.

There are deals available to buy properties in various conditions, and also to buy land. There are deals for buying at auction as well as via an agent. There are funding solutions for commercial developments and residential. There are straightforward loans with staged-payments and finance where interest is added to the loan and paid on the sale of property, refinancing at a later stage or exit from the deal.

Finance for property development can be complex, and so having an expert adviser to help you understand what is right for you is essential. Getting the right deal can have a big impact on speed and profitability of the project.

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