Development finance is used to support the costs associated with a build/renovation project. Providing ultimate flexibility, it can be used for commercial, residential and mixed-use properties.

This finance type is designed to give your clients the financial backing they need that a regular mortgage can’t cover. This could be due to the client’s circumstances, the lenders strict criteria or the nature of the project. It covers various stages of development, from buying land to breaking ground on construction, or even refurbishments.

Whilst the build or renovation costs are important when securing your clients a deal, development finance lenders look to the future. Here’s a few things lenders consider when deciding whether to fund specialist cases or not, as ultimately the result of the development will impact the repayment of the loan.

• What will your client’s property be worth once the work is complete?

• Are your clients starting from scratch or are they renovating?

• What is the nature of the development?

How development finance works

Step 1 – Securing a loan

Working with Crystal Specialist Finance, you will benefit from our team of experts with extensive experience in the development finance sector along with our close relationships with lenders.

Step 2 – Loan payments

Funds are available to assist with the purchase or with working capital if the project is already owned. Loan payments to your clients will be released in phases as the project progresses. Once existing funds have been exhausted, the lender will make payments as and when necessary.

Step 3 – Loan repayments

Upon sale of the development, the client will pay the amount borrowed including any added interest. Your client may have overestimated costs and is therefore left with a lump of cash they no longer need from the lender. In this scenario, don’t panic! The client will only be charged interest on the funds drawn from the loan pot.

Whether your client is a small developer planning a quick-fix up or more experienced with ambitious plans, we’ll work on hammering down a deal tailored to their needs. Get in touch on 01827 337710 or enquire through our CrystalHUB.

Let’s nail your client’s development deal together.

Find out more about development finance here.