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Property Development Finance 2010

There are plenty of property developers out there seeking highly geared loans, so here is a bridging finance product that may be of interest.

The first thing to say is that this product offers the potential to lend "up to 100% property development financing", but in the end it comes down to details.

Property valuations are currently very conservative, so you need a margin to cover potential shortfalls or cash!

Here is a quick overview of what this lender is looking for:-

As a developer you must have relevant experience.
The project should ideally be for 1 to 6 units, no flats with the possible exception of London.
Maximum loan to gross development value 70%, against what the lender describes as a realistic valuation.
The maximum loan in cash terms is £1.25m, inclusive of all finance costs e.g. any interest roll up etc.
An arrangement fee of up to 2% of any loan offered.
Interest from 1.5% per month, rollup allowed where there is scope to allow this.

So there you have it, one of the few, if not the only high loan to value product out there!

Submitted by Bridging Loan Broker on Tue, 13/04/2010 - 15:23