Best loans for property development
KIS Bridging Loans are totally independent finance brokers who specialise in finding their clients the best possible development finance deals.
With access to all lenders we have built an impressive panel of lenders that is made up from the very best development finance providers. Our extensive funding options mean that we can facilitate development projects ranging from £100,000 to £1 billion and above.
- Loans from £100,000 to £1 billion
- Very fast decisions and full terms provided
- Fast funding
- Extensive panel of lenders for best possible deals and funding unusual developments
- 100% funding available
- 100% Construction finance
- Mezzanine finance
- Joint venture funding
- Up to 70% end value (GDV)
Finance can be arranged for a wide range of development projects:
- Building new houses, flats and maisonettes
- Care homes
- Fitness centres
- Property conversions – for example, old industrial property into luxury apartments
- Restoration projects
- Property expansion
Although most of the development loans that we arrange are for projects in London and the Home Counties, we can also provide funding throughout the UK.
100% development finance
100% facilities can of course be arranged with additional security.
If additional security is not available, then provided there is enough profit in the project once the development has been completed, the mainstream lenders will typically lend up to 60% of the land cost or value, and then 100% of the build costs. Some lenders will lend more than 60% of the land value/cost for the right project, plus there are options to increase funding further through mezzanine finance or joint venture funding.
Most lenders require the applicants to have previous development experience. We do however have facilities for applicants who do not have any previous experience.
What is development finance?
Development loans are used to fund various types of building projects, including new builds, conversions, expansions and restoration projects.
Finance can be provided for all types and sizes of new builds including acquiring a plot of land and building a single residential house on it, to large sites and building hundreds of houses. They can also be used fund new hotels, leisure centres, care homes, offices, flats, etc.
This type of lending can be used for property conversions such as turning an old mill or old retail premises into flats. They can also be used to fund expansion, for example a client may have an industrial unit and want to build another one next to it, or expand an existing care home or hotel.
What funding can development finance provide?
Basically a lender will lend against the value of the land and also provide the build costs. The lender is interested in is how much the land is worth before the development begins and what it will cost to build the development from start to finish. Then most importantly they want to know what the project will be worth once it is finished. This is known as the Gross Development Value or GDV.
Land cost + build cost (including architects, solicitors, etc) = total cost
GDV will be an estimate to how much the development will be worth upon completion.
Taking the total cost away from the GDV (GDV – Total cost = Profit) will demonstrate what the project could be worth. A lender will want to see a healthy profit in order to proceed.
Typical development financiers will release money for the initial purchase of the land followed by staged payments as the development progresses.