Property Development Finance

Property Development Finance

What is Property Development Finance?

Property development finance is a type of funding for new building projects, comprehensive renovations, redevelopments, or general refurbishments. These finances are suitable for residential, commercial as well as mixed-use property developments.

The finances are flexible and affordable and can be repaid after the sale of your developments. If you intend to keep some of your finished properties from the projects, it’s possible to repay the development loan by refinancing the properties to a long-term investment loan.

Tic Finances offers various Property development loans:

  • New Construction Loans
  • Refurbishment Loans
  • Conversion Loans
  • Mixed Residential and Business Property Loans

Loan funds can be arranged between £25,000- £30 million

TIC Finance process to obtain a property development loans

Enquiry – Once the client has found a suitable property contact TIC finance to discuss what finance options available Fill out our online form or contact via email or a phone call.

Indicative Terms

  • Tic Finances will provide the client with indicative terms after the enquiry.
  • We aim to respond back to the client within one hour of their enquiry.
  • If the terms are favourable to your investment, it is vital we move on to the next step

Agreement Principle

  • We will provide an outline of their finance and charges in an agreement principle.

A visit from us

  • One of our instructed surveyors will visit the property development site to obtain evidence of existence of your intended project and discuss the project further
  • We will provide a valuation report of your project which may include its current condition, cost estimation and expected market value.

Loan Application

The loan application will be underwritten by us as a confirmation of the exact terms of the loan including all the cost involved

Confirmation

We instruct our solicitor to provide the correct documentation to be sent to the client’s solicitors.

The client and their solicitor will have to provide the requested information
The client signs all the necessary documentation and the originals are sent back to our solicitor

Types of Bridge Loans

New construction loans

  • This is a loan for someone who wants to develop new properties.
  • Works on a progressive drawdown basis; which is in line with your building contract
  • The loan is drawn in stages in accordance with the fixed price of the property. Stages include
    • Base stage
    • Frame stage
    • Lockup stage
    • Fixing stage completion

Refurbishment Loans

  • The loans are provided depending on the kind of property refurbishment they are two types light refurbishment and heavy refurbishment
  • Light Refurbishment: A refurbishment where no building regulations or planning permissions is required not required change to the nature or overall use of the property.
  • Heavy Refurbishment: A refurbishment where building regulations or planning permissions are required and where there are structural changes to the nature or overall use of the property.

Conversion Loans

  • Conversion loans are available for those looking to purchase property which needs significant renovation or converting an old building such as a barn.
  • Converting property is meant to bring it to a modern level and significantly add more value.

Mixed Residential and Business Property Loans

Loans available for property investors and developers who are looking to develop property which is designed to allow for more than one use

Releasement of funds

Funds are normally released within 48 hours, however in some rare case can take longer depending on the complexity of the deal

Why choose TIC Finance

We have been in this market for a very long time and understand the urgency in acting quick, as time is money. At TIC Finance, we have a wide range of funding solutions that can be readily available; these vary from private investors, wealth managers and private banks.

Our lending facility is very unique and incredibly simple. This allows us to offer flexible finance options at a speed which caters to your circumstances. We have an in house team who solely specializes in development finance with decades of experience and knowledge. Our individual approach makes our processing time faster, quicker and more efficient than our market competitors.

If you require quick and easy finance for developments please contact us 24/7 on 020 3411 4451 or fill in our online form for one of the team to call you back instantly.

Common Reasons Why People Need Property Development Loans

The property finance market in Britain is on the rise one again due to a number of reasons.

One, property developers are currently working on a massive number of new homes since the financial crisis.

Two, rental incomes are expected to rise by over 21% over the next 5 years.

Three, home prices are expected to increase by 25% over the same period. Although this prediction stands changed after Britain’s exit from the European Union.

Four, commercial rental growth is generally rising across the UK.

As a result, many property investors, developers, and landlords are looking to diversify their portfolio in developing new constructions or revamping properties with the intention of selling them at a profit upon completion.

The lack of finance however hinders them from achieving this, prompting them to obtain property development finances.

There are different types of property development loans available for developers who are looking to build new constructions, upgrade old and tired looking properties with the intention to increase their market value, purchase and convert buildings such as barns to other uses, develop properties that can allow for more than one use, and purchase properties while waiting for the existing one to sell.

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