An Insight into How Development Finance Works
At Hunter Finance, we’re a private lender that specialises in property finance loans from £100k to £2.5m. Since 2010, our loans have helped both experienced developers and builders and those beginning their careers in the housing market industry.
Like any other business venture, building new homes or refurbishing existing houses can be a risk, but our guide is here to provide you with the information you need.
Part 1: What is development finance?
Property development includes both commercial businesses or residential renovations and covers the purchasing of buying a tract of land with planning. The right finance partner can often be the difference between profit and loss.
This option offers a solution for cash-flow problems and provides you with extra funding to purchase land or cover construction costs.
Part 2: What types of projects are commonly funded?
Hunter Finance has helped several different property projects progress across South-East England including Sussex, Surrey, Kent, Hampshire, London and beyond.
Hunter Finance focuses on residential property and commercial developments.
Part 3: Why choose Hunter Finance?
There has been a sharp increase in the number of private lenders in the last few years. Unlike banks, Hunter Finance can respond to your application within 24 business hours and can arrange a site meeting within 48 hours.
Part 4: What does our application process involve?
At Hunter Finance, we design and offer the property development loans that we believe are best suited for your project. The application process involves us familiarising ourselves with and fully understanding the site for the proposed development, the project plans, and your financials.
With over 500 developments financed in South-East England, we can more often than not provide you with a development loan facility.
Part 5: When will I receive the funding?
Once we’re satisfied with your application process, Hunter Finance will produce an ‘Offer in Principle’. This will set out the terms and conditions of the loan and any other relevant information. Our surveyor will visit the site and we’ll put the offer through a legal process.
We can typically provide our funding in 10 working days, but this can vary depending on the project.
Part 6: How do I repay a development loan?
Hunter Finance creates a property development loan that is best suited to you. We tend to offer repayment terms over a short period of time. Repayments are primarily based on your project.
Repayments to your development loan can include the sale of each unit/property.
Part 7: How much interest will I have to pay?
Hunter Finance provides development loans for projects with our own funds. This allows us to provide flexible interest rates on a deal by deal basis.
We offer competitive rates for all housing loans. Our interest rates tend to range between 8-18% per annum.
Need development finance? Apply today!
If you have a project you need funding for, apply online today. We consider all applications in the South East of England from Berkshire to Norfolk, Sussex and Kent.
