Development finance loans typically start from £200,000, with upper limits varying among Development Finance lenders. Some lenders may offer loans up to £100 million and over.

Interest rates for Development Finance generally range from 7% to 15%, depending on factors such as the lender, the borrower’s creditworthiness, and the specifics of the development project.

Most lenders require evidence of full planning permission to secure a formal offer of Development Finance. Having planning permission in place demonstrates the viability and feasibility of the development project. It is possible to obtain pre-planning loans.

While obtaining development finance with bad credit may be challenging, some lenders specialize in offering loans to borrowers with less-than-perfect credit histories. Exploring alternative lending options can help secure funding even if traditional lenders have declined the application.

Development finance is a form of funding specifically tailored to support property development projects. It is typically needed when developers require capital to acquire land, finance construction costs, or undertake renovations or conversions. This finance provides the necessary funds to cover the various stages of property development, from initial acquisition to completion and sale or rental.

Development finance is utilized at various stages of property development, including:

1. Land Acquisition: Financing is required to purchase land for development purposes.
2. Planning and Design: Funds may be needed to conduct feasibility studies, obtain planning permissions, and develop architectural plans.
3. Construction: Capital is necessary to cover construction costs, including materials, labor, and contractor fees.
4. Marketing and Sales: Financing may be required for marketing efforts to attract buyers or tenants.
5. Completion and Exit: Funds are needed to complete the project and either sell the property or refinance with long-term financing.

Tapton Capital plays a crucial role in assisting developers throughout the financing process by:

1. Structuring Financing Packages: We work closely with developers to structure financing packages tailored to their specific project requirements and financial objectives.
2. Sourcing Funding: Leveraging our extensive network of lenders, including banks, private investors, and alternative finance providers, we source suitable funding options for developers.
3. Guiding Developers: We provide guidance and support to developers throughout the financing process, from initial application to disbursement, ensuring a smooth and efficient transaction.

Lenders evaluate several factors when assessing development finance applications, including:

1. Project Feasibility: Lenders assess the feasibility of the development project, considering factors such as market demand, location, and potential profitability.
2. Developer Experience: Lenders look at the track record and experience of the developer, including their past projects, financial stability, and management capabilities.
3. Collateral: Lenders may require collateral, such as the property being developed or other assets, to secure the loan.
4. Loan-to-Value Ratio: Lenders consider the loan-to-value ratio, which represents the loan amount as a percentage of the property’s value, to determine the level of risk.

Yes, Tapton Capital is committed to providing continuous support to developers throughout the development process. Our services include assistance with refinancing, exit strategies, and ongoing financial management to ensure the success of the project from inception to completion. We prioritize building long-term relationships with our clients and remain dedicated to their success every step of the way.