Frequently Asked Questions for Development Finance
Development finance is a type of loan that may be used to either improve an existing facility or build a new one.
We aim to secure funding that incurs no exit fees.
Yes, funding is secured against the property value.
No, the interest is rolled up throughout the agreed-upon term of the loan.
You are only charged interest for the period you have the loan.
No, the loan is secured against bricks and mortar only, i.e., the value of the property if it is empty.
No. We lend on residential, semi-commercial, and commercial properties and land regardless of construction, type, or use.
Development finance can be secured within a few days of receiving all documentation.
A feasibility study of your development would be required.
When the development can demonstrate a profit, i.e., increased value, or when it can provide a revenue stream, e.g., tenant rental payments.
No. It refers to an individual looking to build a property from the ground up and subsequently live in it.
No. However, we recommend customers seek independent legal advice prior to completion.
These are staged payments made against work carried out on the property.
Drawdowns can vary from project to project.
Drawdowns are usually released as follows:
- Land value: An initial drawdown against either the purchase cost or the value of the land (if already owned).
- Initial costs include footing and foundation.
- Wall plate, which is the basic external structure of the project.
- Wind and water are tight, which primarily means the windows and the roof.
- First fix: This includes plastering and the initial installation of the electrics.
- 2nd fix: Complete the electrical work and any finishing work required, such as painting and decorating, landscaping, etc.
The FCA does not regulate all mortgages, such as buy-to-let and commercial. UK Property Finance Ltd. is authorised by the Financial Conduct Authority (FCA) under No. 667602.