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Property Development Loans

Our lenders will get you building.

Frequently Asked Questions

Excellent

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468 reviews

Build cost cover

100%

Land cost cover

70%

Finance Length

18 Mos
Typically no broker fee. Save between £500 - £2000
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.

Richard Jeffery
Rated 5.00 stars out of 5

I approached B2Bfinance as I was looking for a mortgage on an existing property for a new build. The mortgage was for a small newly set-up company. I was clearly a low-value 'niche' customer. I found B2B extremely professional, finding a selection of excellent products and offering different options. What set them apart was their consistent supp...

Raj
Rated 5.00 stars out of 5

Gillian has been a joy to work and is a testament to the hard work and dedicated shown during this transaction. I have no hesitation recommending Gillian and look forward to working with her again.

Mark
Rated 5.00 stars out of 5

Great brokers to work with. Especially Amanda. Her attention to customer's detail is bar none. 👍

Rich A
Rated 5.00 stars out of 5

Amanda helped me obtain finance for a new buy to let. She was brilliant from start to finish and gave great advice on the options available. Would defo recommend and use again.

Murray
Rated 5.00 stars out of 5

Gillian provided exceptional support to me throughout my company's mortgage application. This was my first mortgage via a Ltd company and her advice and guidance was a huge help in ensuring the best deal for my circumstances as well as providing friendly reassurance throughout. Communications were excellent and I would not hesitate to contact Gilli...

Patrick Oliver Hughes
Rated 5.00 stars out of 5

Amanda Worthington at B2B finance is a great asset to her team and our business too. Amanda has help us with 3 refinances now and we will certainly use her in the future. Amanda is Positive, proactive, knowledgeable and extremely helpful, I cant recommend her enough. Thank you for your continued support!

Rated 4.91 out of 5 based on 468 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.

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