Development Finance

What is Development Finance?

Development finance can be used to finance both the land purchase, and also the build costs.

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The highest loan to value development finance plans will fund up to 70% of the land cost and 100% of the build costs, provided the loan amount does not exceed 70% of the gross development value.

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However, facilities that offer as much as 70% of the land cost and 100% of the build cost, are specialist. Therefore, their interest rates, set up and exit fees, usually all carry a premium, along with also having stricter underwriting criteria.

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To obtain the best deals it is best to restrict development finance facilities to 60% of the land cost and 100% of the build cost.