Documentation Requirements For Development Finance
If you are a property developer who is seeking development finance for a potential new venture then there are certain items of paperwork that you may be asked to provide by the lender that you are approaching so that they can consider your request for funding. The following list is not exhaustive but should help you gather together the documents that may be required.
Obviously, the paperwork required might vary dependent upon things like the amount being sought, LTV, whether you are developing just one property or building fifty new homes and whether you are just commencing a business in property development or have been established for many years.
Do remember that the better prepared you are then the more impressed the potential lender will be and the more likely you will have of obtaining the required development finance. Also, the sooner that you can provide the information then the quicker you will get a response from the lender, hopefully meaning that you do not miss out on the business opportunity to a competitor.
The sort of information required could include: –
- A profile of yourself and other key people including details of your track record within property development. The more experienced you and your co-directors/co-partners the better.
- Plans of the site location and how it is to be laid out.
- What sorts of properties are to be built on the site i.e. 3/4/5 bedroomed detached houses, bungalows, semi-detached, terraced and apartments.
- An estate agents report estimating sale prices of the properties.
- Copies of the planning consents obtained along with any planning conditions.
- A detailed breakdown of the cost of developing the site along with cash flow projections/ projected profit and loss/balance sheet and previous years audited accounts.
We hope that the above is of assistance but do feel free to contact us to discuss your individual requirements as we can help you put together the documentation required by the most suitable lender to consider your proposition for development finance. We look forward to hearing from you.