Development Finance

Development finance is a type of financing that is used to fund property development projects, such as construction, refurbishment, or conversion of existing properties. This type of finance is typically used by property developers or investors who require funds to purchase land or property, or to undertake significant renovation work. Development finance is designed to be a flexible solution that allows borrowers to access funds quickly to complete a project.

Lenders will typically assess the borrower’s creditworthiness, financial stability, and the potential value of the completed project when determining eligibility. Development finance can be offered on a short-term or long-term basis, with interest rates and fees charged based on the duration of the loan. This type of financing can be secured or unsecured, with secured loans requiring the borrower to use the development project as collateral.

Development finance typically has higher interest rates and fees than traditional mortgages due to the increased risk involved. However, it offers a valuable option for property developers who need to access funds quickly to complete a project. It is important for borrowers to work with a finance broker who has experience in securing development finance, as they can advise on the best lenders, rates, and terms for each individual’s unique circumstances.