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Property Development Loans

Our lenders will get you building.

Frequently Asked Questions

Excellent

589 reviews

Build cost cover

100%

Land cost cover

70%

Finance Length

18 Mos
£795 fee. Payable on acceptance of decision in principle
Exit products available
Interest rolled-up
Staged payments with interest paid on draw down

How It Works

With our simple form, case management tools, and expert advisers; finding funding has never been simpler.

Complete online enquiry

Let us know about you and what you would like to achieve.

Indicative quote

Your assigned adviser will issue an indicative quote.

Offers from lenders

Review your offers and choose the best for you.

Lender chosen

Valuations are conducted, formal offers made, funds are drawn.

Get Quote

Frequently Asked Questions

Need answers? We got 'em.

Property development finance is a type of loan used to finance the conversion, construction or refurbishment of properties. It is usually set up as a short-term loan to finance the project only during the build.

Popular reasons include:

  • Construction

  • Conversion

  • Refurbishment

We are experts in presenting development projects in the best light to lenders helping you achieve the best terms. When packaging a development case, we always look to address the following:

  • Experience – For a lender the developers experience is key to the deal. We go to great lengths to explain the background experience of our client to lenders. If you are a first-time developer then we will need to concentrate on the strength/experience of your contractor.

  • Business plan – We provide working business plan templates for you to complete. These break down costs, show time-scales for each stage, and realistic end valuations, which lenders are expecting to see. We even sense check the figures for you!

Lenders like the developer to put down a substantial value of the land as a deposit. If the land has planning permission most lenders will require a borrower to put down a 40% deposit, some will accept 35%. If the land does not yet have planning permission then the lender needs to decide what the chances of getting planning permission are, and what would happen if planning permission wasn’t achieved. If they were comfortable with the risks, they may still lend at 60% to 65% of the purchase price. If they were not comfortable, they would reduce their exposure substantially and perhaps lend only 30% to 40% of the purchase price.

Once the loan is approved, the lender will appoint a professional surveyor. They will visit the site prior to each major stage, check the work has been done to the required standard and approve the release of the next tranche of funds to complete the following stage. We have a number of lenders who will fund 100% of the build costs, subject to a situation where they advanced no more than 60-70% of the gross development value (GDV) of the project at any time.

Once a development is completed the development loan will either be repaid through the sale of the units, or by arranging a term mortgage. The term mortgage is based on the final gross development value (GDV) of the project.

If the actual of estimated rental income (according to a local estate agent) is high enough a developer should be able to release up to 70% of the GDV of the project. This should repay all the funds used in the project, and potentially release some profits.

If poor cash flow is restricting the purchase of future development plots then it may be wise to release equity prior to the completion (or sale) of the project. We have a number of lenders that will allow equity to be released, whilst final touches are being made, or units are being marketed and sold. Sometimes this can mean that your workforce can move straight onto the next site without a gap in work.

Excellent Service

Don't just take our word for it. Read our latest reviews.

Anonymous

Rated 5.00 stars out of 5

fast trustful, very helpful. I will definitely come back again.

DANIEL S Z M BOCTOR

Rated 5.00 stars out of 5

Rebecca Jones from the B2B team has been fantastic to work with. Thank you for all your efforts. She was able to facilitate an excellent deal for us, for a very difficult case in a difficult market. We are very pleased indeed. Thank you Rebecca for all your support and making the journey as smooth as possible for us! We really appreciate all your h...

Anonymous

Rated 5.00 stars out of 5

Great help from Jodie.

Robert Pulford

Rated 5.00 stars out of 5

Absolutely the best service I have ever received from a firm of finance brokers. Andy Jones and Jo McCarthy were superb and I would always recommend them. The thing is they always come up with an answer and so many brokers just ignore you and don’t come back!

Mark

Rated 5.00 stars out of 5

Jo McCarthy helped us find a great holiday let mortgage where other brokers had failed, either to achieve the required LTV or approval of financial income etc. It has been the quickest and easiest process that I have ever encountered in my experience of over 20 home loans.

Anonymous

Rated 5.00 stars out of 5

Jo McCarthy was an absolute pleasure to deal with and diligent throughout negotiations, underpinned by effective communication between all parties concerned in the deal. Thoroughly recommended for future use.

Rated 4.91 out of 5 based on 589 reviews

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

About Us

Legalwebb UK Ltd T/A B2Bfinance.com is authorised and fully regulated by the FCA. Ref: 734694.

B2Bfinance.com operates as a commercial finance broker and is not a lender. B2Bfinance.com is a full member of the financial intermediary and broker association (FIBA) and operates under its code of practice.

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Contact Info
  • 0116 298 7376
  • info@b2bfinance.com
  • B2Bfinance.com, 169 London Road, Leicester, LE2 1EG
  • Monday - Friday, 9am - 5pm
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