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Releases (when and how much):
Month 1: (£)
Facility and Exit Fees:
Other Costs: [+]
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Development Finance Calculator

This is the only online development finance quoting calculator that provides instance results!

The development finance quotation will include interest charges, the various fees (facility, exit, valuation, QS, lenders legal), VAT refunds, profit before finance, profit after finance costs, total finance costs, total project cost, development profit and return on cost calculations. 

Therefore it is a very useful tool for developers who not only want to determine if a project will have a sufficient amount of profit, but also compare and experiment with various different options.

For example:

How does the overall cost of finance change from a plan offering a lower interest rate but an exit fee based on GDV to another plan with a higher interest rate but exit fee based on the loan facility.  

Or

Instantly compare the effect on development profit by changing the timings and amounts released at different stages of the project.

Our Development Finance Calculator is intended to provide a guide to the costs of development finance. For accurate written quotations please contact us.

How to use our Development Finance Calculator

Simply complete the input boxes then click on calculate to view instant results. You can then go back and edit the initial information that you provided to compare different options and how they affect the profitability of the project.

Start by filling in the boxes to provide the quoting system with the following information:

Total Net Loan Amount Required - This is the total amount that you require to be released from the facility and includes the day one release to help with purchasing the site, plus all subsequent releases. Do not add in anything for interest charges, the calculator will do that.

Loan Term Required - In months, please enter the loan term required.

Land Cost or Residual Value - If the development site is being purchased please enter the purchase price. If it is already owned then please enter the residual value. That way you can determine if it is more profitable to develop the site yourself or simply sell it.

Stamp Duty - Please enter the amount of stamp duty that needs to be paid or taken into consideration. If you need to calculate the stamp duty then please click on the link to our stamp duty calculator.

Amount Available From Customer - How much cash do you intend to put into the development?

Total Build Cost - This box requires the total cost of the build and should include a total of all the project costs other than the cost of the land, stamp duty and finance costs. If you wish to break this down there is another section (other costs) where you can itemise different costs.

GDV Amount - What is the expected Gross Development Value once completed, or if planning to sell before completion, what is the value at the point of intended sale.

Initial Release (Prime Funding) - The development finance facility starts with the initial release. What funds are required for the initial loan release?

Interest calculated per annum or per month - By default this is set to per annum, but can be changed to monthly.

Interest Rate - By default set to 7% to provide interest calculations based on 7% per annum. This can be changed to the required interest rate or to provide comparisons.

Releases (when and how much) - Use this section to enter how much and when funds will be required. Interest is only charged on funds that have been released. Experiment by making changes to this section to see how changing the amounts and timings of releases affect the interest charges and profitability of the project.

Fees

The development finance quotation calculator will calculate the fees associated with development finance. Depending on the lender and the loan plan there is a large range of interest rates and fees.

The main fees to consider are the facility fee, which is normally a percentage of the loan facility, and the exit fee, which, if charged, is either a percentage of the gross loan facility or the Gross Development Value (GDV).

Other standard fees are Valuation, Legal and Quantity Surveyor fees. These again vary from one lender to the next, so our calculator provides an estimate of these. 

Facility Fee - This is set at 1% by default, but can be changed so that you can compare options.

Exit Fee - By default this is set at 1% of the gross loan facility by default, but can be changed to any percentage of the gross loan facility or the GDV. Please experiment to see how the different options compare, as can be quite significant!

Other costs

In order to provide useful development profit and return on investment calculations, it is important to take into consideration all costs. Please enter here any other associated costs that were not included in the 'Total Build Cost' figure.

VAT Claim Back

If you can claim any VAT back please enter details here. Any VAT that can be claimed back decrease the overall cost of the project, therefore increasing the development profit and return on investment figures.

Results

Once you press calculate the development finance quotation calculator will display the following information:

Monthly interest charges - the number of months will be displayed with a running total of the gross loan amount at the end of each month. This takes into consideration the facility fee, loan releases for the amounts and months selected, and interest charges.

Net Loan Amount - The net loan amount requested which includes the initial and subsequent releases.

The Facility Fee

Interest Charges - Total amount of interest charged

Gross Loan Amount - Total of Net Loan Amount + Facility Fee + Interest Charges

Exit Fee

Redemption Loan Amount - Gross Loan Amount + Exit Fee

Valuation Costs – Estimated

QS Costs - Estimated

Lender Legal Costs – Estimated

Other Costs – Total of other costs from information provided

The development finance calculator then provides other useful information to help illustrate the profitability of the project, both with and without the cost of finance.

Interest Rates and Costs

We are completely independent development finance brokers who use all the best lenders. Interest rates and costs vary considerably depending on the type of development, location, amount of investment from the borrower, development experience and the amount being borrowed.

The Best Deals
 
From 5% Per Annum
1% Facility Fee
No Exit Fee
Funding Up to 60% GDV
 
From 6% Per Annum
1% Facility Fee
No Exit Fee
Funding Up to 85% to 90% of Cost
(If LTV no more than 70% GDV)
From 9% Per Annum
1% Facility Fee
1% Exit Fee

Our job is to find you the best possible deal for your development finance requirements.

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