Differences between Commercial Property Refurbishment & Development Finance!
Commercial Finance funding can be somewhat complex and sometimes finding the right funding can prove difficult and confusing. Below highlights the two very popular funding options and key differences;
The above refers to work from the ground upwards that will require certain permissions, i.e. whether building one or more properties from scratch or large-scale projects, I.e. Large-scale extension project to current structures. It can also be used to purchase land on which the development will be built.
The above refers to the renovation or restoration of current structures where there is no need to seek planning permissions. This could be anything from a lick of paint to thorough re-furnishings of fixtures and fittings considered to be a home improvement.
Confusion can come into place when a project may involve moving walls or some form of other structural works, therefore clients seeking the correct funding need to remember that if the proposed works represent a small portion of the property, i.e. to renovate a current structure, providing the property with a lick of paint through to re-furnishing fixtures and fittings, then this is considered a home improvement and refurbishment finance is the option.
Larger jobs will require Development funding as building a property is considerably more expensive than simply renovating. The minimum loans for development funding start from Â£100k upwards. Refurbishment projects will often complete a lot quicker as they are less extensive. Therefore, refurbishment terms tend to be shorter lasting from 6 months to 1 year and are lower in value.
At Yorkshire Development Finance we are specialists in the above sectors and can provide all our clients with the very best funding options for their needs sourcing from the whole of the market. If you would like to speak to the team with regards to Development funding or Refurbishment, then do not hesitate to get in touch and we will be more than happy to assist you.