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.
  • High Street Bank Interest Rates 3 – 4% over Base.
  • Lenders agreeing 100% build costs 7% pa – 2% per month.
  • Arrangement Fees 1 – 2%
  • Exit Fees 1 - 2% of End Value/GDV

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Sterling Capital Reserve Ltd
Sterling House, 10 Wheatcroft Business Park, Landmere Lane, Edwalton, Nottingham NG12 4DG
Tel: 0115 984 9800 Fax: 0115 921 5550

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