Magnet Capital understand that every development project is unique and as a result their funding is tailored to each individual project to suit the needs of the clients.
Magnet Capital is a principal lender for development finance across England and Wales. They approach working relationships with clients and partners in a personable fashion and aim to build long-lasting relationships. Operating in this way Magnet help projects to reach their full potential and in doing so supports growing businesses along the way. The team has a deep level of knowledge and experience which they choose to target solely for development finance projects.
The Magnet team like to keep things as simple as possible as evidenced by their loan process which, from start to finish, is broken down into just 6 key stages. Firstly, they seek to discuss any new project on an initial telephone call, next they like a simple application form to be completed after which a member of the team will meet the borrower and at this meeting an offer letter is usually signed. Finally, a surveyor will then meet the borrower on site and compile a report for Magnet after which legals can be progressed and funds can start to be drawn down.
Development finance is an effective way to fund an interesting property or development opportunity, the main benefit being that it can be accessed far quicker and on more flexible terms than many high street banks will offer. The amount Magnet lend is based on the estimated value of the project upon completion, known as the Gross Development Value (GDV) and crucially applications are assessed through human eyes and not through lending algorithms or a giant computer! Once underway Magnet will offer ongoing advice and guidance every step of the way through the funding and development process. It’s not hard to see why so many of Magnet’s clients keep coming back to them time and again.
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
Loans generally range from £25,000 to many millions depending on the size and complexity of the planned development. The amount that can be borrowed depends on the strength of the development proposition, the location, the potential profits, the perceived risks and of course ultimately on the lenders risk appetite.
Yes. Rates are generally a little higher for development finance which reflects the greater complexity and slightly higher risk associated with this form of lending.
Experienced developers, some of whom rent out completed properties, often use property they already own within their portfolio to secure lending. With enough equity in an existing portfolio finance can be secured to buy more properties or land for future projects.