Large-scale property development requires stable, secure finances in order to succeed, and Assured Property Finance provide dedicated loans for this sector
Property developers need to know that their finances are secured before beginning work, in order to move quickly and confidently; time is of the essence in any development project, and a stable source of finance is crucial for success. Assured Property Finance is a specialist lender who operates within the property development finance sector, providing various forms of funding for developers such as mezzanine finance, bridging loans and equity release.
The lending products on offer from Assured Property Finance empower developers at every stage; bridging loans are invaluable for acquiring property and jump-starting a project, while Assured Property Finance’s mezzanine facility allows developers to stretch their capital further when securing a long-term lending solution, often secured through a second charge.
Both mezzanine and bridging loans are vital for new projects, but Assured Property Finance also provides midlife finance for pre-existing developments, and their equity release loans enable developers to react flexibly as developments mature. Because it enables developers to withdraw and reinvest their capital this type of finance is indispensable for developers with other projects to finance, or for property investors looking to develop a portfolio. The comprehensive lending solutions on offer from Assured Property Finance make it a first choice for property developers at any stage of a project.
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A bridging loan is a short-term loan secured against property. It allows you or your business to “bridge a gap” until either longer-term finance can be arranged, or the underlying security or other assets can be sold.
Development finance can be offered against both residential and commercial property. Development loans are designed to help developers fund refurbishments, renovations, or conversions of existing property or to build brand new properties on a ground-up basis.
Development finance can be used for new build projects, commercial and residential developments, renovations, conversions or for the redevelopment of existing properties. Loans can be used for a vast range of different property types.
By assessing how extensive the project is, how long it is likely to take and how much it is likely to cost in a worst and indeed a best-case scenario. Refurbishment bridging loans will cover a majority of light and heavy refurbishment projects but for more extensive development projects including ground-up builds of one or indeed multiple units, development finance can potentially cover both the land purchase and build costs
Drawdowns are staged payments made by the lender under the terms of the development finance agreement. These payments are triggered as the development reaches certain key stages. For ground-up developments, after an initial drawdown to cover the purchase cost or the value of land already owned, drawdowns are often triggered at key points of the build. Typically, these drawdowns cover early costs (footings and foundations), wall plate (the erection of external structure), wind and watertight (windows and roof), first fitting (plaster and electrics) and second fix (decoration and completion).
This is unlikely. Funding can usually be secured which incurs no exit fees.