Development Finance

Loans for development finance typically start at £200,000, but the ceiling varies from lender to lender. Lenders may offer loans up to £50 million.

Development Finance offers interest rates ranging from 7% to 15%, depending on the lender, the borrower's creditworthiness, and the specifics of the project.

For lenders to offer development finance, full planning permission is required. An approved development project demonstrates its viability and feasibility.

It may be challenging to obtain development financing with bad credit, but some lenders specialise in lending to hard-working borrowers. When traditional lenders do not approve your loan application, you may be able to secure funding via alternative lending.

It is a form of financing that is specifically designed to support property development projects. When acquiring land, financing construction, or undertaking renovations or conversions, developers typically need capital. Various stages of property development are covered by this kind of finance, from initial acquisition to sale or rental.

The following stages of property development utilise development finance:

1. Land Acquisition: Land acquisition for development requires financing.
2. Planning and Design: Feasibility studies, planning permissions, and architectural plans may require funds.
3. Construction: Materials, labour, and contractor fees are all covered by capital.
4. Marketing and Sales: In order to attract buyers or tenants, financing may be required.
5. Completion and Exit: The project needs to be completed and either sold or refinanced.

We can finance a wide range of development projects, including:

1. Single-family homes, apartment complexes, or condominiums constitute residential developments.
2. Buildings for commercial and industrial use, including office buildings and retail centres.
3. Commercial and/or residential mixed-use developments.
4. Hospitality and hotel projects.
5. Developments in student housing.
6. A hospital or medical centre is a healthcare facility.

Throughout the financing process, Tapton Capital assists developers by:

1. Structuring Financing Packages: Our team works closely with developers to structure financing packages that fit their specific project needs and financial objectives.
2. Sourcing Funding: By using our extensive network of lenders, including banks, investors, and alternative finance providers, we are able to help developers find the right financing for their projects.
3. Guiding Developers: From the initial application through to disbursement, we help developers navigate the financing process seamlessly.

Applications for development finance are evaluated based on several factors, such as:

1. Project Feasibility: Potential profitability, location, and market demand are taken into account by lenders when evaluating project feasibility.
2. Developer Experience: Lenders look at the developer's track record, financial stability, and management skills.
3. Collateral: To secure a loan, lenders may require collateral, such as the property being developed.
4. Loan-to-Value Ratio: This is used by lenders to determine the level of risk associated with a loan.

It is Tapton Capital's commitment to provide continuous support to developers throughout the development process. We help clients refinance, plan exit strategies, and manage ongoing financial operations to ensure their projects are successful from start to finish. Every step of the way, we remain dedicated to our clients' success and build long-term relationships.