You cannot deny that the majority of the success of a building project is mainly dependent on the affordability and availability of flexible finance and less on the development site or high-quality workmanship and even innovative design.

Development projects always need a bespoke and niche form of finance, which, unfortunately, most lenders don't provide. Therefore, securing a flexible and reasonably priced loan can be overwhelming. Funds must be quickly available when required, just like property development finance in UK does with its customer.

Here, in this article, you will learn about the basics of development finance. So, let's get started.

What is Development finance?

Many of you are probably wondering the same question. Development finance is mainly a short-term property loan, which generally gets extended for six to eighteen months. Why? Well, it helps the developers buy and bear a development project's costs.

There are several things you can apply for this loan for. Take residential or mixed-use projects, for example. You know Property development finance UK prefer these kinds of projects for their loan. However, you can apply this for grounding up new builds or maybe refurbishing a project.

Primary uses of Development Finance

Did you know there are mainly three uses of development finance? The banks offer property development funding in Hampshire primarily for building the existing property, grounding-up development and rebuilding-knocking down.

Suppose you already own property; you can raise property development funding in Hampshire when you need to refurbish that property, be it a light or heavy refurbishment. And you can apply for the second charge loan as well. But that's only if you already have a mortgage on your property.

How much can you borrow through development funding?

When you apply for a property development loan Services in Surrey, you might think, how much funding will be provided? The answer is it is mainly decided by the lender's valuation report. It generally determines the current value, builds costs and gross development value. The property development loan Services in Surrey is only available when each lender has its own lending parameters; thus, they get the funding accordingly.

What will happen if you're an inexperienced developer?

Well, we all know what would happen then. So, yes, it will be tough to get finance if you have no development experience. But the good news is, it's not impossible if you try this-and-that.

Try to have a strong team behind you, like an experienced architect, builder or project manager. Each of them can demonstrate the brief of realistic costings.

However, if you are a first-timer or less experienced, you can include step-in rights on funding contracts as well.

Robert Boren is the author of this article. For further detail about Property Development Loan Services in Surrey. Please visit the website: hunterfinance.co.uk