Taking out Development Finance

Taking out Development Finance

Development finance is becoming more and more popular, but just what is it?

Development finance is essentially a short term funding option that is used to help towards the costs of development of either a new build property, or a refurbishment of an existing building.

If you are looking to take out development finance, there are plenty of providers out there available for you to utilise, however you also need to be aware that there are several types of development finance available to you, with some of the most common being:

Light Refurbishment

This type of development finance is usually used for things such as redecoration of a property and / or the installation of new fixtures and / or fittings.  You cannot do anything structural with this type.

Refurbishment Property Development Finance

Covers ‘Light Refurbishment’ as above, but also DOES include structural works.  This will NOT cover heavy extension works.

Property Development Finance Conversions

One of the hardest development loans to obtain because you cannot accurately predict costs, which lenders usually base their decisions on.  If you aren’t experienced, don’t think about it as you most likely will not get approved.

Property Development _ Finance New Build

As the name suggests, this finance is only available for new build properties, and again you will find that on most occasions, only experienced developers will be accepted.

Self-build Residential Property Development Finance

This type of development finance is catered for by specialist lenders.  For this you will generally need to arrange a mortgage on completion.

So there are the main types of development finance.  

Make sure that you choose the right type of finance for you.  You can do this by investigating each type more thoroughly to understand the features and benefits that each offers and to see where any of the limitations each one will invariably have throws a spanner in the works for you.  

Before going ahead with development finance it IS very important that you research and speak to people in the know about the subject, as the last thing you want to do is take on something that you really don’t need or know much about.

If you’re struggling for info on property development finance, head over to UK Development Finance where you will find a whole host of information covering the subject and that should hopefully put your mind at ease.    Once you’ve got your head around it and you have decided which type of finance you want to go with, you can use the site to compare rates across 75 different lenders meaning you can definitely get what you need at the best price possible.

Don’t miss out!

Categories: Finance

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