Property Development Finance Criteria
Property Development Criteria and Interest Rates for UK Businesses with either a good credit record or poor credit history.
The lenders criteria for advancing a loan and the respective rates vary considerably from case to case, however, as a general guide we would expect to obtain the following:
Development Finance Criteria:-
- Loan size £100,000 - £5m
- Term up to 18 months
- LTV - Up to 60% of End Value to include interest roll up
- 100% of build costs
- Valuation by Lenders surveyor. Valuer will monitor costs, timetable and cashflow.
- Stage Payments are usually released on monthly certification.
- Sites to have planning permission in place before drawdown of build cost loan.
- As a guide, projects should show a minimum profit of 25% profit on costs.
- Interest rates vary depending on the proposal. Written illustration available on request.
- Lenders agreeing 100% build costs 7% pa – 2% per month.
- Arrangement Fees 1 – 2%
- Exit Fees 1 - 2% of End Value/GDV