Development Finance

{"limit":1000,"message":null,"objects":[{"answer":"

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• Property development finance is a type of short-term, secured finance that is used for many small, medium, and large-scale property projects, including renovations, office block conversions or to purchase and build on previously undeveloped land from the ground up.
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• Development finance is used by many different types of people from private individuals to portfolio developers and small to large companies
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• Unlike a traditional mortgage, development finance is a short to medium-term loan that is secured against the projected gross value rather than the current value of the land/property. It can be complicated so it is beneficial to use an experienced broker, like Aria Finance.
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837372108,"hs_deleted_at":0,"hs_id":82356730211,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1664548973147,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What is Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Any individual or limited company can apply for development finance.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837422367,"hs_deleted_at":0,"hs_id":82356730212,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126259398,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Who can apply for Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Development finance can be arranged for residential properties like townhouses and flats, new builds and terraced houses, commercial properties such as warehouses, factories, shops and offices, as well as semi-commercial or mixed-use developments.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837453914,"hs_deleted_at":0,"hs_id":82356730213,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662556937265,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What does Development Finance cover?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"There is no maximum borrowing when it comes to development finance. Development finance is typically reliant on a valuation assessment of the project that is planned, once all the works will have been completed – the Gross Development Value (GDV).","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837492053,"hs_deleted_at":0,"hs_id":82356730215,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126262307,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How are Development Finance rates calculated?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Typically, the loan cannot be taken altogether upfront but is drawn-down in tranches as stages of the development are complete. Often the lender will insist upon this, and interest is usually charged based on the amount drawn down at any one time.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1660837649677,"hs_deleted_at":0,"hs_id":82356730218,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126263824,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Do Development Finance loans have to be taken all at once?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Depending on the lender, development finance can be used for a broad range of properties including residential, commercial, mixed-use, single and multiple units, ground-up new-build developments, conversions and renovations and development-to-let.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934464240,"hs_deleted_at":0,"hs_id":83526019746,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126321017,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What types of projects can Development Finance be used for?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Subject to lender criteria, typically an individual or limited company can apply for development finance. Many lenders will only lend to those who are able to evidence previous experience of successfully completing an equivalent development project.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934688701,"hs_deleted_at":0,"hs_id":83496505977,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126322867,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Who can access Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Three important factors will be assessed for an idea of loan size

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• The current value of the site with planning or the value of the property before works.
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• The build costs
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• The gross development value (GDV) is the end value of a property once works have been completed
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Typically, lenders will consider up to 65% of the gross development value and up to 100% of the build costs. Many lenders may not consider an application if the total build costs are more than 75% of the GDV. Loan terms are typically up to 18 months.

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The size of the loan amount obtainable will also vary with lenders. Aria Finance have experience in funding projects which range anywhere from £150,000 to £25,000,000.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934718042,"hs_deleted_at":0,"hs_id":83526019756,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126324073,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How much money can be borrowed with Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Development finance is typically structured in two stages. This begins with the initial day one loan which helps get the project underway. Lenders will consider up to 60% of land purchase price at this stage. Then, the rest of the loan is then drawn down in stages depending on the progress of the project (upon certification from a monitoring surveyor).","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934852547,"hs_deleted_at":0,"hs_id":83526019758,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126326494,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How is Development Finance structured? ","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Interest rates will be calculated by

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• The amount borrowed
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• The percentage borrowed against the overall costs – current value and build costs combined
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• The loan term required Interest rates typically start at 5.5% and are often calculated annually.
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934900085,"hs_deleted_at":0,"hs_id":83526019760,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126329139,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How is interest calculated on Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

These fees will vary across the market

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• Broker fee – This varies between brokers. Some brokers do not charge a fee and rely on receiving commission from lenders when the loan completes. Other brokers may charge a fixed fee or a percentage of the total loan value.
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• Application fee – Some lenders and brokers charge for submitting an application
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• Valuation fee – To calculate an unbiased, accurate value of the security, lenders will typically instruct an independent valuation. This can also include a projected valuation of the project once completed
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• Arrangement fee – Often calculated as a percentage of the total cost of the loan
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• Monitoring fees – Development projects are monitored for progress and this typically involves a cost.
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• Drawdown fees- A fee charged whenever a new instalment of funds is transferred to the borrower
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• Legal fees – If needed, borrowers will have to pay for legal costs such as hiring a solicitor or qualified legal advice
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• Exit fee – Often calculated as a percentage of the total cost of the loan
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• Administration fees - Any additional costs charged by either lender or broker
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661934991318,"hs_deleted_at":0,"hs_id":83526019880,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126330691,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What fees can I expect with Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Development finance is only regulated when the borrower, a family member or other close person is planning to live in or currently resides in the property. At least 40% of the property will have to be used for residential use in order to qualify for FCA regulation.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661935052973,"hs_deleted_at":0,"hs_id":83496506011,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126332568,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Is Development Finance regulated?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

This is the typical process with a broker...

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• Enquiry for capital raising raised by the client
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• The broker then reviews mortgage options
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• If development finance is considered most suitable, the broker will typically refer the case to a specialist finance distributor (SFD) who may have wider access to development finance lenders and more competitive rates o The broker will inform the client that they are being referred to an SFD. They should also discuss with their clients all costs, fees and charges, required documentation, the importance of transparency and the desired exit route.
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• The SFD then reviews the key case details and...
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• Assigns the case to an underwriter who assesses the initial suitability of the application
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• Indicative terms are sent to the client, their broker and an agreement letter to proceed for the client to sign and return
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• The client is then sent paperwork with a checklist of supporting documents to return to the specialist finance distributor
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• A third-party surveyor instructed by the SFD visits the site to determine the project’s plausibility – and a valuer for the project’s total value
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• The formal loan offer and final terms are then sent to the client. At this point, the client may involve their solicitor for legal support and advice on whether to proceed. The loan completes and the day one loan is drawn • This is followed by further drawdowns until the project is complete
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","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661935172445,"hs_deleted_at":0,"hs_id":83526019934,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126334623,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How does the application process work for Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Typically, development finance is exited through refinance or sale of the property. Refinance quite often involves the developer exiting onto a longer-term loan facility where they retain ownership of the property and rent it out to repay the loan. Cash redemption is also an acceptable exit route if the applicant is able to show evidence of a cash event substantial enough to clear the loan occurring within the term. Investment portfolio maturity, pension lump sum or other cash events are typically considered.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1661935218835,"hs_deleted_at":0,"hs_id":83526019937,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1662126336521,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What are Development Finance exit routes?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Heavy refurbishment bridging/ development finance offers clients an opportunity to secure funds to assist with the purchase (or remortgage) of a property and typically covers 100% of the build costs.

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Developers and other property investors often have their funds tied up in existing projects or property. A heavy refurb bridge or development product can be a great way to help them move onto their next project without having to wait for the existing ones to sell or pulling money out of those properties.

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During a refurbishment project, cashflow for your client is likely to be limited. Most lenders will allow the interest to be rolled up into the loan, meaning that there's no monthly payments due on the loan, freeing up their cash whilst property undergoes work and isn't generating them any income. 

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Loans can be arranged and the pre-planning stage, or once planning is granted; then Aria Finance helps facilitate the funding process and enables your client to bring their desired projects to life.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694511591229,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134538432831,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694512393963,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How can Heavy Refurbishment Finance benefit your clients?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Your client's track record (i.e., their history with previous projects); if they don't have experience themselves, then lenders will look to understand who the client's main contractor will be and what projects they've completed, to ensure that the development will run smoothly.

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The viability of the project, including:

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• Location
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• Market demand
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• Total costs for the project including the purchase price, build costs, professional fees
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• What the property will be worth on completion (GDV)
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• The client's ability to repay the loan at the end of the term, whether it be via sale or refinance
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Each lender has specific criteria which must be considered during the application process. At Aria Finance, we have a panel of lenders carefully selected to help clients with a variety of projects and with varying development experience.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694512396075,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134544646552,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694512722545,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What factors are considered when evaluating your clients' applications for Heavy Refurbishment Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"Applications Process","labelTranslations":{},"name":"Applications Process","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Yes, we can arrange funding for all types of property projects, Whether it's a quick 'tart & turn' or a more complex refurbishment, conversion or ground-up development. We have solutions to meet your client's needs.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694512727950,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134544646559,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694512881357,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Can my client get refunding for Ground Up Development projects?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Ground-up Development Finance offers developers an opportunity to secure funds to assist with the purchase (or remortgage) of property or land, and typically covers 100% of the build costs.

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Developers often have their own funds tied up in existing projects, and development finance can be a greater way to help them move onto their next project without having to wait for the existing ones to sell. 

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For newer clients coming into the industry, it also allows them the opportunity to have the cashflow to complete their project whilst also having the experience and guidance of the lenders to help seem them through the build. 

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Loans can be arranged at the pre-planning stage, or once planning is granted then; Aria helps facilitate the funding process and enables developers to bring their desired projects to life.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694512937192,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134544646563,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694514752274,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"How can Ground-Up Development Finance benefit your developer clients?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"

Your client's track record (i.e., their history with previous projects); if they don't have experience themselves, then lenders will look to understand who the client's main contractor will be and what projects they've completed, to ensure that the development will run smoothly.

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The viability of the project, including:

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• Location 
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• Market demand
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• Total costs for the development including the purchase price, build costs, professional fees
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• What the property will be worth on completion (GDV)
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• The client's ability to repay the loan at the end of the term, whether it be via sale or refinance
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Each lender has specific criteria which must be considered during the application process. At Aria Finance, we have a panel of lenders carefully selected to help clients with a variety of projects and with varying development experience.

","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694514754366,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134546045286,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694515588715,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"What factors are considered when evaluating your clients' application for Ground-up Development Finance?","sub_category":{"createdAt":null,"createdByUserId":0,"id":4,"isHubspotDefined":false,"label":"Applications Process","labelTranslations":{},"name":"Applications Process","order":3,"type":"option","updatedAt":null,"updatedByUserId":0}},{"answer":"Yes, we can arrange funding for all types of property refurbishment projects. Whether it's a quick 'tart & turn', or a more complex refurbishment or conversion requiring planning permission and structural alternations. We have solutions to meet your client's needs.","broker_specific":0,"hs_child_table_id":0,"hs_created_at":1694515677944,"hs_created_by_user_id":25791956,"hs_deleted_at":0,"hs_id":134520612198,"hs_is_edited":false,"hs_published_at":1708095516058,"hs_updated_at":1694516071966,"hs_updated_by_user_id":25791956,"products":[{"createdAt":null,"createdByUserId":0,"id":2,"isHubspotDefined":false,"label":"development-finance","labelTranslations":{},"name":"development-finance","order":1,"type":"option","updatedAt":null,"updatedByUserId":0}],"question":"Can my client get funding for property refurbushment projects?","sub_category":{"createdAt":null,"createdByUserId":0,"id":1,"isHubspotDefined":false,"label":"The Basics","labelTranslations":{},"name":"The Basics","order":0,"type":"option","updatedAt":null,"updatedByUserId":0}}],"offset":0,"total":20,"totalCount":20}