What information do I need to apply for development finance?
Development finance is a little different to your average mortgage or property loan. Here are some basic requirements and information you will need to provide when applying for development finance.
Lending criteria for development finance
Development finance lenders will usually consider each application on a case-by-case basis. However, it is still important to keep the following points in mind too:
- best dating site for lds women over 50 Term of loan: this will usually be between 3 and 24 months in total. Some lenders may be more flexible with the terms of a development finance loan, but be aware of early repayment penalties should you wish to closer sooner than later. Some lenders will only offer a maximum of 12 loans and you will be required to complete within this date or refinance at the end of the term.
- linked here Loan to value maximum: this will usually be in the region of a maximum of 60 to8 0% of GDV, depending on the lender. The lender will consider how much you are asking to borrow as a percentage of the gross development value of the completed project. The GDV is the Gross Domestic Value, as in, what the total property value will be once you have completed all upgrades and renovations.
- Experience: the level of experience of the property developer will also be important. You will be required to show proof of your financial records and previous schemes.
- Security offered: the building or site is used as a collateral, since development finance is a form of secured finance – and the company or individuals risks losing this if they do not keep up with repayments.
- Location of the development: the location of the site or building will also be taken into consideration, looking at things like potential value, growth of the area and any other potential challenges.
- Feasibility of the project: the lender must decide if your project is viable. If they have too many concerns, your application could be reconsidered.
nolvadex and clomid purchase What information is needed for a development loan application?
- Who the main contractor will be
- Who will be the project manager for the development finance project
- Company structure
- Asset and liability statement for the company directors or applicants involved
- Details of the site or building: this includes the value, location and the price of the site or property. An official valuation will need to be taken out, unless you have a document from a RICS surveyor within the last 3 months
- Development costs (construction costs, broken down into different parts)
- Development appraisal
- Planning permission details: what you are intending to build and what permission you have already for the site (proof of documentation required)
- Gross Development Value details: this includes providing evidence of the expected end value to the lender.
- The details of all applicants involved. If you are a limited company then the directors details will all be required too. This includes the history of previous developments carried out, how successful they were, their CVs, and project profits from previous developments.
Do I need guarantees?
No, you do not require guarantees if you are applying for development finance – see payday bad credit for more information.
What paperwork will I need to provide?
Other important items you will need to provide include:
- Details of professionals involved in the project
- Details of your previous development experience
- A completed Asset, Liability, Income and Expenditure Summary (ALIE)
- A planned exit strategy for the project being carried out
- A detailed breakdown of all project costs
- All designs and drawings of the project
- Planning permission details and applications
- A complete schedule of works for the project