What is development finance? Typically, larger loans for property projects, needed because projects are more complex and take longer to complete. Development finance is used to fund large property ventures, such as renovations, regeneration projects, conversions and developments, and cannot be used for smaller property projects (Bridging loans or refurbishment finance would work best in this case)
Examples of where this type of finance could be useful include residential property, land purchases included, single and multi-unit projects, new builds and conversions, joint venture projects, and semi-commercial buildings.
Why are these loans popular? Developers can usually repay the loan in full in shorter times, usually 6 months to 2 years, by selling the newly built project on completion. Finance is usually released at intervals during the works to spread the cost, and in some cases, you can borrow 100% of the sums needed.
Each development is unique, and requires different finance options, ASC can optimise your application to lenders and increase your chances of success in securing finance. For more information, please contact your local ASC Office.