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Development Finance

Deedle can help you get Development Finance today. Property developers or companies can secure short term loans to pay for the renovation or refurbishment of a property.

Our expert team can help you borrow £25,000 to £25 million, with loan terms ranging from 3 to 24 months. To get a free quote for development financing, fill in our form to speak to an advisor!

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Development Finance in 4 Simple Steps

Step 1
Get A Decision In Principle
After a face-to-face or virtual meeting to discuss your project requirements, we offer an initial quote and formal Decision in Principle. This will be sent within just a few hours of enquiring.
Step 2
Instruct Solicitors
Both parties organise the administrative side of the process by instructing their respective solicitors. This allows the loan application to come together so that we can prepare for funding.
Step 3
Property Valuation
We can then organise a survey within 24 hours of going ahead with the loan. This will provide an up-to-date and reliable property valuation for you.
Step 4
Funding Decision
One the application is reviewed, funding can be approved. This process will take approximately 6 weeks and involves corresponding with solicitors and other relevant third parties.
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Why Apply For Development Finance With Deedle?

Deedle works with over 40 renowned development finance lenders so we can help to find the right funding options for you. Available across the UK, Scotland and Wales, the development finance companies we work with can cover 100% of build costs and 50% of the purchase price. Better yet, bad credit is also considered!

Simply complete our online enquiry form and our dedicated development finance team will get in touch immediately. We can then give you an approval in principle in as little as 24 hours. The types of developments we can facilitate funding for include new builds, renovations, extensions, conversions and part builds for both residential and commercial properties.

Can You Give A Development Finance Example?

Let’s say a developer has planning permission to build 3 houses with the gross development value estimated at £6 million. The total costs involved are £4 million, comprising of £2 million for buying the land and £2 million in building costs.

A lender might agree to the development finance of £3 million (limited to 75% of costs) structured as £400,000 as an initial advance, followed by the balance in stages throughout the build. You can be rest assured that Deedle will always do what is best for the developer, helping them to get the most competitive rates and the fastest source of funding possible.

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What Type Of Properties Can Be Funded By Development Finance Lenders?

Residential Development Finance

From single residential builds to larger scale multi-unit development complexes, our development finance lenders can help you renovate, refurbish or buy properties. Whether it’s housing development finance or for a single flat or block of flats, Deedle can help you finance the construction costs and purchase the property on flexible terms. Once complete, you will have the choice to sell the improved property at a higher price or you can rent it out.

Commercial Development Finance

Deedle can help you finance commercial properties such as shops, offices, farms or vacant land. If you need help financing all the fittings and fixtures such as the lighting, plumbing and the aesthetics, then get in touch today. We work with a range of specialised lenders who are experienced in working with commercial property so you can be rest assured that you will receive top notch service.

New Build Finance

Whether you are building a new estate from a plot of land or knocking down a property and starting from scratch, Deedle can help to secure the new build finance that you need for your development project. There are also several new build schemes provided by local councils and banks to help those with new properties, including equity loans where you can secure 5 years interest free if you have a 20% deposit or guarantor mortgages.

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What Can You Use Property Development Finance For?

Light Refurbishment – The main changes to the property are aesthetic rather than structural. This could involve internal work to improve floors, ceilings and walls.

Heavy Refurbishment or Renovation – This could include moving internal walls, plumbing or electrics, adding rooms and external walls, or even partial demolition and rebuilding. Aesthetic changes would be made too.

Ground-Up Development – This involves starting with a clear piece of land or stonework and building it up, or it could be a full refurbishment or conversion into fully functioning homes or a block of flats. The aim may be to sell it on the open market or to rent it out.

What Are The Development Finance Costs?

There is usually a 2% commitment fee when accepting the offer and a potential 2% broker fee (this could sometimes be lower). Your surveyor and solicitor may also charge survey, valuation and legal administration fees (usually up to £1000).

Interest rates vary but are typically from 6% per annum depending on the company, security, gross development value (GDV) and more. When it comes to repaying your loan and interest, you can either do this on a monthly basis or ‘roll up’ the interest so that you can delay full repayment until once the project is completed. However this would mean that the interest is compounded so it would be slightly more expensive than repaying it back each month.

How Much Money Can You Borrow With Development Finance?

This varies depending on the lender. The loan amount that you can borrow is based on a percentage of the gross development value (GDV) and what the property will be worth at the end as if it were sold to a purchaser on the open market. Some of our development finance lenders offer a maximum of 60% loan to GDV, with a maximum of 75% of total costs.

Typically the lenders cover full build costs and a percentage of the land costs. The funds are usually sent to the developer in stages according to the certifications from the architect and the quantity surveyor.

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Do I Qualify For Development Finance Loans?

The eligibility criteria includes that:

  • You must be based in the UK, Scotland or Wales
  • You must have information including GDV, construction and site costs
  • You must be a limited company
  • All credit histories are considered

What Is The Difference Between Development Finance And Bridging Loans?

Development finance is mostly used for refurbishments and renovations and is not as time sensitive as bridging loans which is focused more on borrowing money to close out a deal with a strict deadline. This includes buying a property from an auction and having up to 28 days to come up with the funds or risking losing your deposit and the deal.

Frequently Asked Questions About Development Finance

What Is Development Finance?

Development Finance is when property developers or companies secure short term loans to fund the renovation, refurbishment or construction of properties whether that be a house, flats or a commercial space. It is commonly used by investors or companies to rebuild properties, turn a house into flats or develop a commercial property to sell or rent out with the aim of achieving high profits.

How Does Development Finance Work?

You can borrow finance for property development for up to 24 months. Funds are available through non-bank institutions and specialist finance lenders, enabling developers to get access to quick funding so that they do not miss out on profitable investment opportunities.

Which Locations Do Your Development Finance Lenders Operate In?

Whether you need property development finance in Scotland, England, Wales or anywhere else across the UK, we would be delighted to assist you today. We can help you secure property development finance in London and many other locations including East Sussex, Essex, Kent, Hampshire, Uckfield, West Sussex and Glasgow to name a few. Deedle may also be able to facilitate funding in Ireland or overseas if the customer can provide further information.

What Is The Maximum Amount I Can Borrow?

It is possible to borrow up to £25 million towards your property development finance project. This would be based on approximately 100% of build costs and 50% to 70% of the land costs.

How Quickly Can I Receive Funds For My Development Project?

It is possible to receive funds for your project within 2 weeks. This may take a little longer or could even be quicker depending on the complexity of the project. There is usually the option to either receive the funding in one lump sum or in stages throughout the project to help manage cash flow.

Deedle Finance is the trading name of Tudor Lodge Digital Ltd which trades under company number: 10437769.

Deedle Finance does not provide advice on regulated mortgage contracts or credit agreements, these are carried out by one of our independent FCA regulated associates. 

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENT ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.

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