Property development finance is finance used to fund residential or mixed-use property development projects.
CA bridging loans can be used to acquire properties with planning permission, or properties which have planning potential. CA can, if required, offer funding to assist with the cost of the property development. These development loans are generally written on different terms to CA bridging loans.
We typically lend on residential and mixed use projects in London and the Home Counties. We can lend against the following types of development projects:
We can tailor our finance to fit the precise needs of your property development. Here are the key features of our loans:
he Gross Development Value (GDV) of a development project is an estimate of the market value the development is likely to achieve once works are completed.
As a general rule, we would expect the developer to make at least a 20% profit on cost.
We base the loan amount on a percentage of the Gross Development Value (GDV. We lend to a maximum of 65% of the GDV dependent on the size of the project, with a maximum of 80% of the total costs.
On a typical loan, we fund up to:
as long as this totals no more than 60%/65% loan to GDV dependent on the size of the project.
If you’re looking for additional funding, we will consider working alongside a mezzanine lender on your project.
To apply, you will need to call us on 020 3857 6350 to speak to one of our lenders to discuss your requirements or email us on firstname.lastname@example.org. If the requirement meets our lending criteria, we will start the loan process:
No. The loans we offer are only available to experienced developers. We require you to demonstrate that you have commensurate experience to undertake the project.
We often work with borrowers who purchase properties at auction or on the open market with the intention to secure planning permission for future development. If a planning application is pending or not yet submitted, we may be able to offer you an initial bridging loan. In such cases, we will need to be satisfied that the existing use is viable if planning is not granted. Once you have received planning, we can convert the bridging loan to a development loan.
You will need to provide full details of your project. This might include:
CA carefully selects its professional panel of valuers and solicitors to prioritise speed and service. We always pay close attention to your completion timescale and we benefit from decades of experience funding auction purchases so our processes are set up to move quickly.
We do not allow dual legal representation, so you will need to instruct a solicitor to act for you who has expertise in undertaking property development transactions.
The build float is released as works progress. We will appoint a project surveyor to monitor the works. They will produce certificates against which we will release funds. The facility will also contain an allowance for these fees.
We have been lending in the market since 1983 and have a strong understanding of the delays and issues that may be encountered on development projects.
We are there to support you throughout the project. You will have a dedicated Lending Manager to speak at any point from initial instruction through to repayment of the loan
Start your development loan application now. Call 020 3857 6350 now to talk through your finance options with one of our experts. Or email us at email@example.com, and we’ll be in contact very quickly.