How It Works
With our simple form, case management tools, and expert advisers; finding funding has never been simpler.
Let us know about you and what you would like to achieve.
Your assigned adviser will issue an indicative quote.
Review your offers and choose the best for you.
Valuations are conducted, formal offers made, funds are drawn.
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:
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.
Don't just take our word for it. Read our latest reviews.
Happy with the service I received from Amanda Worthington from B2B finance will be using her services again in the future and can highly recommend her.
Jo from B2B finance is absolutely amazing, emails are responded to immediately and nothing is too much trouble. Jo arranged my mortgage with what felt like ease and solutions (although it was not straight forward) when others found difficulties and problems. Fantastic service and will definitely use again and fully recommend to others.
Paul & Angela McDonnell
Just done re-finance with Tim Leverett who we could't recommend highly enough. Helpful, always answered or got back to us quickly, advised us along the way, brilliant Thank you Tim.
Hardeep Maan has been amazing, she's always remained in contact which no other broker has done. Although I've not been successful buying any properties as yet she's always been there and is credit to your company. As a Chartered Accountant I will absolutely continue to recommend her to others.
Great service! Was made easy at every stage and always on hand to answer any queries that we had. Made the acquisition very smooth, definitely recommend!
I am a portfolio landlord and have been a landlord for many years I have vast experience in the property world, however recently I entered into a deal which has been extremely complicated to say the very least I am fortunate to have dealt with Jayne King I have to say if it was not for Jayne this deal could have fallen through when things are compl...