How to Secure 100% Development Finance in the UK

Learn how to secure 100% development finance in the UK. Understand what it is, the criteria for eligibility, and the steps to take to secure it for your property development project.

By: Gary Secure
Published: 1:16 PM, Jun 6, 2023

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Securing 100% development finance can be a game-changer for property developers in the UK. It provides the necessary funding to cover the entire cost of a development project, from purchasing the land to the construction costs. This article provides a guide on how to secure 100% development finance in the UK.

What is 100% Development Finance?

100% development finance is a type of loan that covers the entire cost of a property development project. This includes the cost of purchasing the land, the construction costs, and sometimes even the selling and marketing costs.

In the UK, 100% development finance is typically provided by specialist lenders who understand the unique risks and rewards associated with property development. It's worth noting that while 100% development finance can be highly beneficial, it also comes with higher risks and costs compared to other types of loans.

Eligibility for 100% Development Finance

Securing 100% development finance in the UK requires meeting certain criteria. These typically include:

  • Experience: Lenders often prefer borrowers who have a track record of successful property development projects.
  • Profitability: The proposed project must demonstrate strong potential for profitability. This is usually assessed based on the Gross Development Value (GDV) of the project.
  • Exit Strategy: Borrowers must have a clear exit strategy, such as selling the developed properties or refinancing them.

Steps to Secure 100% Development Finance

Securing 100% development finance involves several steps:

  1. Prepare a Detailed Proposal: This should include details of the project, including the purchase price, construction costs, projected GDV, and your exit strategy.
  2. Find a Suitable Lender: Not all lenders offer 100% development finance, so it's important to find one that does. This could be a high-street bank, a specialist lender, or a private lender.
  3. Apply for the Loan: Once you've found a suitable lender, the next step is to apply for the loan. This will typically involve providing detailed information about the project and your financial situation.

Securing 100% development finance in the UK can be a complex process, but with careful planning and preparation, it's certainly achievable. Remember, it's important to understand the risks and costs associated with this type of finance and to seek professional advice if needed.

Gary Secure

Introducing Gary Secure, the knowledgeable individual behind GSecure Finance, a comprehensive resource dedicated to property finance in the UK. With a deep understanding of the complexities of the property finance market, Gary's mission is to provide individuals with reliable and up-to-date information to make informed decisions for their financial future.

At GSecure Finance, Gary provides expertly written articles that delve into a wide range of topics related to property finance. Whether you're interested in commercial loans, development finance, business lending, or funding construction contracts, his articles offer in-depth insights into the UK property finance landscape. From project management of developments to London development projects, and from land valuation appraisal to the role of development finance institutions, GSecure Finance covers it all.

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