Sometimes the more conventional self build mortgage lenders can’t help – perhaps because the affordability criteria don’t stack up, or the project does not fit in with their processes.
The solution may well lie in investigating the possibility of a development finance package – these loans are usually tailored towards commercial developers but the self builder can also benefit from their imaginative approach to funding.
Homebuilding & Renovating work closely with leading development finance broker John Charcol to help self builders and small developers requiring specialised finance solutions.
As many of the traditional sources of development funding have dried up, John Charcol has worked closely with a number of financial institutions and specialist lenders to ensure that their developer clients (both residential and commercial) have still been able to fund their projects. They can also arrange mezzanine loans to rank behind senior facilities already secured by developers.
As you would expect, those lenders who remain in the development arena are very selective in the current market so it is essential to put together a properly structured presentation to help guarantee your project’s chances of success. To give you an idea of how John Charcol can make your development project happen, here are three case studies of development deals that they have completed this year.
The table below is indicative of the type of development finance that John Charcol can access for their developer clients.
|Interest Rate||Arrangement Fees||Exit Fees||Max GDV||Purchase Price||Build Cost|
|Serviced/Funds on Deposit||8.99%p.a. (0.583%p.m.)||2% Added to loan||Nil||70%||65%||100%||Enquire Now|
|Rolled Up||10.45%p.a. (0.871%p.m.)||2% – 2.5%||Nil||70%||65%||100%||Enquire Now|
|11.99%p.a. (0.999%p.m.)||2% – 2.5%||Nil||75%||65%||100%||Enquire Now|