Whether you wish to renovate a buy-to-let property or want to undertake large-scale property development, you will definitely be looking around for certain property finance options.

Even though property finance is a little complex, even for the most experienced player in property development, there is always a learning curve for beginners. In this article, we will explore a few aspects of property development funding to help you understand the concept in-depth.

What is property development finance, and what can it offer?

Property development finance is a type of business finance that is used to fund a residential, commercial or mix-utility property development. It is a broad finance category that looks after terms, mortgage, personal loans, and even bridging loans. It is also referred to as large-scale funding of huge renovation works and buildings.

Property development loans can be used to fund regeneration projects, workspace development or new residential housing projects. In fact, it proves to be the best form of property finance for ground-up developments like building a property from scratch.

Although the potential returns from huge projects like property development are massive and tend to attract many investors, it is best to obtain expert’s advice before considering this magnitude of loan.

What paperwork do you need?

Paperwork plays a key role in any type of finance application; property development finance is no different either.

In fact, the paperwork here is more than usual and is taken into account based on the property’s future value. As a developer, you are required to provide:

Current value information of the property, only if you own it and have not purchased it.
The predicted end value of the property with proper evidence.
Associated building and renovation costs.
Time schedule of the development.
CV or portfolio of experience in developing projects.
Information of any other professionals involved in the development.
Planning permission’s copy
Information on building regulations.
Any planning restrictions that may apply to the project.

Should you hire a broker?

Every development is different from one another. Some developers may do just fine, having no experts to guide them through the property development funding process, while others may benefit immensely from using one.

A reliable broker or agent can ensure the lender’s offering is in your best interest. After an initial consultation, the experienced team of experts will ensure you are placed under the most appropriate lender to achieve the goals.

With a broker or agent by your side, you can expect clarity on how much the loan will cost and obtain a deal that suits your circumstances. In fact, the experts can make the process highly streamlined for you. They will keep you posted about the progress and even negotiate on your behalf.

Signing Off

It is evident from the article that property development finance in the UK is a quite complex area. That is why assessing the extent of your project, its overall cost and length is crucial to determine the type of finance that will suit you the best.

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