Our lending partners
Loans up to £5,000,000. The max LTGDV is 65% of the project.
Up to 24 months, however this will all depend on the project.
Interest rates from 0.65% per month.
Security will be taken as a 1 st charge on the development site until the loan has been fully repaid.
We can obtain a decision in principle within 48 hours.
Purpose of finance
Property developer looking to develop a site, whether that be from the ground or major development work to an existing site.
Property developers with an SPV or limited company.
How to fund property development
Setting up a new business or renovating a house can be an exciting new venture but finding the funds for such a project can be daunting. This is where development finance comes in, with many different finance options to prepare you for the task ahead, ensuring you can complete your development without any financial concerns. This solution is very popular with property developers and investors; having immediate finance in place means that you can devote all your energy to the smooth running of your project.
What is Development Finance?
Development finance allows you to borrow between £25,000 and £10 million towards the renovations and refurbishments of a property of your choice. With interest rates starting at just 0.75%, taking out property development loans is more attainable than ever. Once you have submitted a funding application to Aurora Capital, your decision will be returned within a few days. You can also receive an offer in principle, giving you an estimated amount to decide on your final planning.
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This is one area you won’t want to jump straight into the deep end. We’ve compiled some of our most frequently asked questions to put you in the best position when considering whether UK property finance from Aurora Capital is right for you.
What type of projects can development finance be used for?
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.
Who can access development finance?
Subject to lender criteria, limited companies 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.
How is development finance structured?
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).
How is interest calculated on development finance?
Interest rates will be calculated by:
- The amount borrowed
- The percentage borrowed against the overall costs – current value and build costs combined
- The loan term required Interest rates typically start at 5.5% and are often calculated annually.
What are development finance exit routes?
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.
Please drop us a call if you are unsure on what can be financed.
We cover a multitude of finance options.
Aurora Capital is here to help. Navigate our range of solutions to find out more.
Why choose Aurora Capital?
As funding specialists, we provide SME’s with business loans that are suited directly to their needs. As independent financial brokers, we have built up relationships with multiple lenders who can provide fast and flexible funding. This means we can offer a wide array of businesses with numerous benefits and competitive rates.
Finding the right funding is often a long-winded process, with plenty of variables to consider from all the different providers. Our finance experts can help, providing you with a list of the best deals and rates. Why not give us a call and talk through the different business funding options available.
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