Development Finance Borrower Guide

See our development finance guide and borrower requirements.

General

  • How much are you looking to borrow

  • For how long do you need the loan for

  • When do you need the loan funds

  • The source of your equity whether this is cash equity or value equity

  • Details of how you intend on repaying our loan. This is typically via a sale or refinance.

  • An appointed solicitor who can represent you and your interests

  • Identification - a valid passport and driving licence. These will need to be certified as authentic and of true likeness by your solicitor.

  • Proof of Address - this is typically a bank statement or utility bill dated within the last 3-months. This will need to be certified by your solicitor as authentic. This also serves to prove the loan will be an unregulated mortgage contact.

  • Contact information for all parties involved in the transaction.

  • If the borrower is a company:

    • Details and identification of all the directors and shareholders with shareholding over 20% as above.

    • Certificate of incorporation

  • If the borrower is an individual or individuals:

    • Details and identification of all borrowers as above.

  • Relevant experience (as an investor or undertaking refurbishments or developments, for example).

  • The source of your equity / deposit, if cash equity.

  • Asset and liability statement, if applicable.

Borrower

Security

  • Type and a detailed description of the project.

  • An accurate current value estimate of the security property. We will provide you with an indicative offer based upon the valuation provided. Should the security property value below the given estimate there is a risk we will lower our offer in line with the revised valuation.

  • An accurate end value estimate (gross development value / GDV) after the security property has been developed / refurbished, if applicable. Should the GDV value below the given estimate there is a risk we will lower our offer in line with the revised valuation.

  • The title and title plan. Freehold or leasehold (plus how many years remaining).

  • Ready and able to provide access to the security property so it can be valued by the our appointed valuer.

  • Details of any existing loans secured against the security property. These will need to be redeemed charges released before we can complete.

  • A copy of the purchase agreement if you’re purchasing the security property.

Planning

If you implementing a planning permission you will need to provide us with the following:

  • A copy of the relevant planning permission.

  • All document relating to the planning application and planning permission.

  • Status and details around any planning conditions when and if they have been discharged - this may come in the form for a planning tracker.

Specifics depending on the scheme and development maybe requested, these include but are not limited to:

  • Is the site in a conservation area

  • Historical maps and land uses

  • Affordable housing requirements

  • CIL / S106 payments

  • Flood risks

Team & Construction

You will need to provide construction information as per the below. This should match with your appraisal and cashflow describe in a later section.

  • Schedule of works

  • Construction costs plan and breakdown

  • Construction program

  • Planning information as per the above

  • Professional Team / Appointments

  • Professional Reports / Surveys

  • Insurance

  • Your relevant development experience

We will require a QS to undertake an assessment of the construction data and planning permission. This assessment forms part of our due diligence.

General

You will need to provide information the following data to our solicitor, if applicable

  • Rights of light / daylight sunlight reports

  • Party wall awards

  • Tree protection orders (TPO’s)

  • Transport and access

  • Red line plans

  • Details of surrounding land uses

  • Details of any existing leases or tenancy agreements

  • Any neighbour disputes

Development Appraisal

You will need to be able to demonstrate the schemes viability and profitability in the form of an appraisal and cashflow. Simply put, the appraisal should show the gross development value (gross and net) less all cost (real and deducted) with the difference between the two being the profit. The cashflow should plot the appraisal data over time.

We finance schemes that show a projected profit of costs of at least 15% (inclusive of interest and fees). Naturally, the higher the profit on costs the better.

Please find contact us to request our template development appraisal and cashflow.