Companies offering development finance UK offer various finance products to property borrowers. These companies have different finance options, arrangements and policies. Despite their differences, the companies offer residential and commercial development finance for the following use.
1) New Build Cost. The acquisition of land and new build will be made possible with 100% development finance. If banks provide the basic 70 percent loans for land acquisition and build cost, companies provide the remaining 30 percent based on mezzanine funding or equity financing. Some companies may provide the complete 100% development finance in senior debt.
2) Refurbishment Finance. This type of finance is used for refurbishment of property. The loan is based on the developed value instead of the purchase price since it takes into account that the property will have increased value after completion of refurbishment. Property refurbishment does not need planning permission.
3) Conversion of Property – Loans for this kind of activity requires planning permission because the work involves extension, remodeling of property, and conversion of what previously existed. Since there would be changes in specification and activities of the property, development finance UK companies usually call on specialist lenders for conversion of property.
Developers just have to look for companies in development finance UK who can provide them favorable finance options. Among many lenders, they could surely find the best deal.
Cherry Bo is providing financial solutions to development projects or owning property by the services of Dial Financial Service LTD. With Dial Financial under development finance UK, you have various options to get the needed funds.
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