Real estate development and new build projects on any scale are incredibly capital intensive and we can find the right funding source to facilitate your next project. Whether you are an experienced property developer or about to embark on your first building project, we can help you meet the costs of your next venture.
The demand for new builds is intensifying but traditional forms of lending from High Street banks are in decline. At Capalona, we work with a large number of alternative finance providers who are able to quickly set up a short-term Development Finance arrangement to suit your exact needs, enabling you to move forward with your project, whether you are refurbishing, renovating or building a property. Our funding partners have a sound understanding of the construction industry and property sector, and therefore offer a range of solid funding options.
Development Finance exists as a short-term funding option for real estate developers, house builders and landlords in both the residential and commercial construction sector. It provides the funds required to meet the costs of the build, and is often critical to the success of a development project. This finance arrangement can be used to fund conversions, refurbishments, new builds and land acquisitions.
With Development Finance, you could access a business loan from £2million to £100million, funding up to 90% of the gross development value (GDV) with repayment terms of up to forty-eight months.
Bridging Finance is a similar funding arrangement available to property developments and is often confused with Development Finance. Unlike Development Finance, it acts as an interim funding solution whilst a long-term arrangement, such as a mortgage, is being established. Typically, a bridging loan is used for light to heavy refurbishment projects and is repaid in regular instalments over three to twenty-four months.
Development Finance can be used to fund a range of construction projects, such as new build developments, including single plots, multiple schemes and commercial accommodation. It is also used to finance property conversions, refurbishments and the purchase of land.
As the property market continues to grow, so too does the availability of funds from alternative lending providers. Terms are favourable – the higher the loan to the GDV, the more flexible the arrangements become – and tailored to suit your personal circumstances and particular needs of your project.
Joint venture and equity loans are also available to property developers. If you need to secure funds for your next tender or you are looking to get your next project off the ground, find out if you qualify for Development Finance by completing our short online application. You will receive a call back from our team within twenty-four hours.