Development finance
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Property development, whether it's the building of a new property or the refurbishment of an existing property, has its own particular set of costs. Finding financing to cover these costs can be a challenge. With development finance, the lender considers the value of the project, not just the value of the existing property or land.

The terms of a development loan are also based on the short term need for the funding. While repayment of a traditional property mortgage may be spread over 30 years, a development loan will be repayable within one or two years. This is a reflection of the time frame for a development project.

The finance offers you the capital needed for the development itself. This often includes costs for materials and contractors. As such, a typical development financing loan can be for millions of pounds, but you can get access to development funds starting at £25,000.

Different lenders will have a preferred investment level, as well as preferred project types so speaking to a broker can help you find the best lender for your development project.

The type and size of project, along with the experience of those involved and the likelihood that the project will be successfully completed, and the units sold, will all be considered in a lender's decision about the terms of the loan.

While a traditional mortgage lender will consider the value of the property, development finance lenders will consider the potential value of the completed project. Funding can often be released quickly, allowing you to begin the development or refurbishment project right away.