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Development Finance

Property Development Finance

At Element Finance, we understand that every development project is unique. We don’t believe in ‘one size fits all’ solutions.

Working closely and comprehensively with every client, we’re committed to finding the right development finance partner for your project.

So, whether you’re an experienced property developer or looking for help with your first project, Element Finance is here to help.

Call or submit an enquiry today for free, confidential and expert advice.

Why Choose Element Finance?

We know how complex and challenging finding the right finance partner can be. That’s why our small, highly focused team takes the time to fully understand your project and how best to bring about its success.

We’re proud to have facilitated a diverse portfolio of development projects. From Commercial Lenders to Private Banks , Element Finance has succeeded in accessing a vast range of funding solutions for our clients.

  • Development finance from £100K to over £25m
  • Access to a wide range of UK based lending partners
  • Mixed use and Commercial Schemes also supported
  • Long term refinancing options for properties retained on completion
  • Mezzanine loans
  • Support for all residential property types
  • Finance options for all regions of the UK
  • One-to-one bespoke guidance
  • Fully confidential consultation
  • Market leading rates

Unlike other, oversaturated companies, our team works with only a select group of clients, giving them the attention and bespoke guidance required to successfully navigate the property development process.

With our wealth of experience and specialised focus, Element Finance is here to get the results you deserve.

Lady thinking about property development financeh a question mark

What is Development Finance?

Development finance comes in many shapes and sizes and without the right guidance can prove all too complex.

Put simply, it is a form of short-to-medium term development loan used to fund the construction or refurbishment of property.

Unlike other finance models, property development loans are usually funded against the gross development value (GDV), meaning the completed project’s value at the end of construction.

So in a sense, property development finance works in reverse, with the financers lending a percentage of GDV or 80-90% of the total project cost.

As such, a clear and defined exit strategy is a highly crucial part of the development finance application process.

There are a wide range of lenders and financial partners throughout the UK, each with their own specific benefits and appetites.

Element Finance is equipped to identify your specific needs, matching your project with the perfect funding partner regardless of your experience.

infographic explaining the concept of how property development finance works

Get In Touch

01454 318339 / 07931890243

Call us or click on this link to book a convenient time for us to call you for a free consultation.

FAQ

Property development finance Wall with question mark

What interest rate can I expect?

We are committed to securing the best possible interest rate for our clients.

Starting at 4.7%, rates will vary depending on the nature of the development project. There are a number of factors which will influence this:

  • Overall Gross Development Value
  • Type of property being constructed
  • Location and size of property
  • Development exit strategy
  • Developers experience
  • Area demand
  • Length of build
  • Total build cost

Do you offer 100% development finance?

Yes we can. However under typical circumstances we arrange loans equivalent to 70-80% of the project’s estimated GDV.

For certain developments we are able to secure 100% of all site purchase, development and finance costs. 

This type of facility is not common and will depend on the site and your experience.

We’re happy to have a free project review to discuss which funding options are available to you.

 

What is mezzanine finance?

Mezzanine finance is an additional loan that sits between the development loan and the contribution of the developer.

While clients can expect a higher interest rate for mezzanine financing, it can enable certain projects to deliver a far more significant return.

Will I always have to put money in?

In this traditional model yes, there will always be a contribution required from the development company. This will vary on a client to client basis, however it’s common to expect a 10% development company contribution.

Get In Touch

01454 318339 / 07931890243

Call us or click on this link to book a convenient time for us to call you for a free consultation.

Not ready for property development finance just yet ?

 

That’s OK.

Why not download our property development e-book? 🙂

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Element Finance is authorised and regulated by the financial conduct authority and adheres to its code of conduct.