As an increasing number of private individuals are seeing the benefits of developing property off plan rather than purchasing businesses as going concerns, the options available for development finance are becoming more varied.
Our business mortgage products give you the opportunity to build either commercial or residential property, or to carry out renovations to existing properties.
The terms of a commercial loan for development purposes vary considerably from lender to lender but, as a general rule, the following will apply:
- 60% - 70% loan to business value ratio
- Up to 100% loan to value, if the applicant owns the land unencumbered
- 1 year+ loan term, depending on the size and nature of the project
We are experienced in offering equity, mezzanine and senior debt funding solutions to developers across a variety of industries.
Factors Affecting Your Loan Application
There are a number of factors which can help to make your application more attractive to a lender:
- A deposit of 30% or more
- Additional security
- Business plan
- Proof of experience
- Good credit history
- Two years' trading accounts, or strong income projections
- Strong proposal from Christie Finance
When assessing a mortgage application for development purposes, any lender will also have to take into account the following:
- The location
- The industry sector you will be developing in
- Planning consent
- Estimated contract term
- The experience of the developer
Go to 'Our Offices' to find your local business mortgage representative now.
Christie Finance – The Intelligent Choice
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