What May Be Key To Obtaining A Great Development Finance Deal
If you are looking into obtaining property development finance, it is quite likely that you are going to need to borrow a significant sum of money. Even if it is only one property that is being built you may still wish to arrange a loan of several hundred thousand pounds but if it is a project involving a site on which you are constructing a number of properties that amount could run into many millions.
In which case, one of the most important factors is the interest rate that you negotiate with the lender. Just a difference of a ½% in the rate can make quite a difference to the total amount of interest you pay. For instance, if you were borrowing say £5 million over 12 months that extra ½% could cost you an additional £25,000 in interest over the year– no small sum.
So, in order to have the greatest opportunity to getting one of the best property development finance deals in the market what do you need to do? Well, if you have an excellent track record of property development then this will hold you in good stead when it comes to negotiating the interest rate and fees.
Another factor that may aid you in obtaining an attractive lending package is if you already have a buyer(s) for the properties that are being constructed as this will give the lender greater confidence as to when the liability will be liquidated. If it is your intention to let out the properties when they are constructed/renovated then if you are able to demonstrate that you have potential tenants interested in renting the property then this will also provide some reassurance to the lender.
Another potential way of getting a more favourable development finance package is to utilize the services of an experienced loan broker that has an extensive panel of lenders at their disposal. In this respect, why not get in contact with ourselves and let us assist you in your search for a great package.