Yorkshire Development Finance
Yorkshire Development Finance are made up of a dedicated and friendly team of ex-bank managers with combined expertise of over 300 years. Here at Yorkshire Development Finance we understand the industry and the needs of developers, more so with the ever changing marketplace. So if you are an experienced developer, inexperienced land owner or a new developer then we can help find the right solution for your needs.
We can assist you with a wide variety of development finance needs from;
- Property Conversions
- Property Refurbishment and Upgrades
- Commercial to Residential conversion schemes
- Part Built property
- Commercial Development
- Residential Development
- Apartment schemes
We can provide finance for all types of development from a simple flat renovation to a larger scale commercial project. Once the development is complete, we can assist you with a refinance of your development loan if the property is to be retained as an investment.
So what else do I need to know about Yorkshire Development Finance?
- All projects considered
- Applications welcome from experienced developers, land owners, and new developers
- Excellent relationships with lenders
- Extensive knowledge and experience
- Professional service from our experts
- Speed, Flexibility and reliability
FREQUENTLY ASKED QUESTIONS
- Obtain the best finance for your needs from a diverse spread of lenders;
- Team has extensive knowledge and experience of development and refurbishment funding;
- Extensive knowledge of the market;
- Highly professional;
- Strong relationships with lenders;
- We are fully independent – obtain the best and most appropriate funding for your needs from the whole of the market;
- Save much time and effort;
- You are much more likely to have a funding application approved as we will carefully vet and prepare the application on your behalf.
All types of projects can be financed, from large multi-unit developments to a single flat being renovated.
The principle parameters are the costs of the scheme and the completed value (Gross development value or GDV) of the scheme. Some lenders will fund as much as half of the initial land cost and 100% of the development costs. Lenders will generally fund up to 65% of GDV by this menthod ( including allowance for interest accrual) and occasionally up to 75% of GDV;
We can provide an indication of likelihood if a lender supporting you and the terms of such support very quickly, once you told us the information that we need.
Funding generally takes around 4-8 weeks but can be quicker where documentation is readily available. Larger and more complex schemes may take longer than this
If you are happy with the likely terms of a loan that we have provided to you, then we will ask you to sign a “terms of business agreement”. This sets out the likely costs of the funding, including what we will charge you. We will ask for a modest commitment fee at this point. All other fees will be dependent on the loan progressing to formal offer. The combined broker and lender fees will be in the region of 2.5% plus lenders professional costs (valuation, legals etc). The fees will vary somewhat according to the size of the loan, the lender used and the complexity of the scheme.
Most lenders prefer property developers to be experienced, and certainly, experienced developers will have access to better rates and terms. Nevertheless, and with the help of our experienced team we can still obtain funding for first time developers.
What is the process of Property Development Finance?
- Application – It is important that you provide as much information as possible at this stage to ensure a speedy process. You need to provide name of potential borrower, address, purchase price, summary of development, timescales, costs, professional fees, exit routes etc.
- Formal Meeting/applications – Once you are happy with the terms you can then proceed onto the formal proposal, you will then be guided through the process and here your lender will find out what support you need.
A credit team will assess your suitability for finance so here you will have financial background checks.
Here you will need to provide
- Proposed development- Appraisal and cash flow outline
- Signed and completed application form
- Full copies of approved plans and detailed planning consents
- Last 3 months personal and business bank statements.
- Last 3 years financial accounts for borrower if available
- CV of the borrowers
- Detail of recent developments completed
- 2 local estate agent opinions in writing of end values and market rent etc
- Details of contractor to be appointed
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