Property Development Finance

If you are looking to fund a new construction project or the acquisition and renovation of an existing property, then we offer a variety of development finance options to support the expansion of your property portfolio.

Our Development Finance Services

Please click on a service to learn more.

Mezzanine Finance and Funding

Getting the auction house legal pack and auction sales particulars checked ahead of the sale day can save many issues further down the line. Many transactions have been hindered by missed issues which can affect the value of the property and even the ability to raise funding against it.

Development Exit Finance

Completing a property development project can bring a whirlwind of emotions – it is an exciting and sometimes stressful experience. With the help of a short-term finance solution from a development exit loan, you can successfully complete your development project and access the profit from it.

What is Property Development finance?

Development Finance is a fairly broad category that covers traditional mortgages, set term loans, bridging finance and even personal loans. It is used for the large-scale funding of significant building or renovation works. Development loans work differently to traditional mortgages.

The team at One Commercial Loans have extensive experience in property development, fully understanding the needs of Developers, in the current ever-changing market place.

A person reading a property development finance contract
A group of builders on a property development site

How does development finance work?

It works similar to any other product, the lender will be primarily interested in:

Criteria

Anyone – from experienced developers to a fist time builder.  At One Commercial we tailor your experience to the lender, ensuring the most competitive terms can be achieved for your project.

Who is eligible?​

Anyone – from experienced developers to a first time builder.  At One Commercial we tailor your experience to the lender, ensuring the most competitive terms can be achieved for your project. Our experienced team and Broker network will assist you every step of the way.

Minimum loan and Maximum loan size

We typically provide assistance for loans from £250,0000 – £10,000,000.

A building site

What are the finance rates for development loans?

As with most loans, the lender is most interested in the assets you are able to offer as security and the feasibility of the scheme.  The more information you can provide upfront, the easier process. At One Commercial Loans our experienced team will assist in ensuring that you have the correct information to assist the process with the lenders.

The interest rates charged will be dependent on the current value, the experience of the you as the developer and the Gross Development value of the scheme.

In addition to finance costs, you will also need to consider, entry and exit fees, professional fees and Broker fees.

Development Finance Interest Rates

There are 3 distinct ways that the interest can be charged. These will be discussed with you and the right one selected depending on your situation and the purpose of the loan. These are:

Residential schemes

New build, build to let, refurbishment, listed buildings and agricultural conversion.

New Builds/Refurbishments

In both the residential and commercial sectors, both with and without planning permission, what planning restrictions – if any.

Commercial Properties

From single units – through to multi-unit developments.

Two people agreeing on a property development loan

Why choose One Commercial Loans?

The Team at One Commercial Loans has many years of working in and around the property market. We have experience in buying, selling, building and letting properties of every type and have been involved with financing both residential and commercial properties.

During the course of our careers, we have accumulated a broad team of commercial brokers that we can introduce to investors who want to buy property. So, when you work with One Commercial Loans, you can be sure of accessing the best deal for short-term finance.

Contact us to find out how we can help you get the most out of your Development investment.

Questions Asked About Property Development Finance

Unlike mortgages, bridging loans are generally unregulated, meaning they are not regulated by the Financial Conduct Authority. However, if a lender requires the borrower’s private home as collateral for the loan, they have to acquire FCA certification and the loan is then considered regulated.

GVD – means Gross Development value of the property/development. Essentially, the value of the development when completed.

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