Once you have found a suitable plot/building project with planning permission, please contact Yorkshire Development Finance to discuss your finance options. We will indicate likely quantum of loan and terms of assistance;
AGREEMENT TO PROCEED
If you are happy with our proposals, we will ask you to sign a “terms of business agreement” which clearly sets out what we are to obtain on your behalf, and what it will cost you.
In most cases the lender will want to come and meet you on site to discuss your proposed project. (This may be done before the agreement in principle is provided)
PROFESSIONAL VALUATION & SCHEME APPRAISAL
A professional and experienced surveyor will come and value the plot/property in its current state and discuss any likely build costs. They will also give an expected market value on completion
The lender will progress to taking a charge (mortgage) over the site to be developed, and over any other collateral being provided, if applicable. You will need a solicitor at this point. We must emphasise how important it is to ensure that your solicitor has experience in handling the legal process for development schemes.
This enables initial funds to be released, either for purchase of the site or commencement of the scheme itself. If you are buying the development then legal documentation is finalised and the lender will send any mortgage funds (if required) to your solicitor
we will seek from you and collate all the necessary documents and information required by the lender. We will prepare a formal business case on your behalf which will be provided to the lender to maximise the chances of approval at the best rates and terms
AGREEMENT IN PRINCIPLE
This will be provided by the lender, which re-affirms the lenders offer of finance and costs/conditions of assistance
MONITORING SURVEYORS REPORT
For larger schemes the lender may require a monitoring surveyor or quantity surveyor to review the proposed scheme costs and also to provide support to the lender as the scheme progresses
Your application will then be fully underwritten, which is a final confirmation of the terms of the loan and includes all costs i.e set up fees and interest rates
the loan will be drawn to fund the development costs as needed, in a structured manner. So for example, contractors involved with schemes will often make a monthly claim for expenditure to date, which, subject to suitable controls, the lender will be happy to fund. Most reputable lenders will only charge interest on the amounts actually draw.
COMPLETION OF SCHEME
Hopefully you will have completed the scheme within expected timescale. If the property is to be retained and rented out as an investment, we can act in obtaining the best long term investment mortgage for you. Or alternatively, you may be expecting to sell the completed property, which will then repay the loan.
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