It is not used for smaller developments where home renovations or property improvement is involved. When this is the case, there are other types of bridging finance that can be used.
Having experience in property development cannot be underestimated and lenders like to see some previous involvement in a project – however small – that has been successful and profitable. It is helpful if you have a good team of builders, planners, and architects on your team.
One of the most important calculations of any property development finance proposal will be your Gross Development Value (GDV). It lets the lender establish if your project is lend-worthy. Many lenders might not consider an application if the total build costs exceed 75% of the GDV or end value of the project. A worthwhile investment is one that allows the lender to loan 65% of the GDV, even if this equates to 100% of total build cost.
PROPERTY USED AS SECURITY, INCLUDING YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. COMMERCIAL MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY OR THE PRUDENTIAL REGULATION AUTHORITY.
For a funder to appraise a project you will need a considerable amount of information. This includes, but is not restricted to:
FFP SolutionsOld Bank Chambers, High Street,St Asaph, LL17 0RD
Registered in England and Wales Company No. 08958626, Registered Address: Unit 32 Llys Edmund Prys, St. Asaph, Denbighshire, LL17 0JAFFP Solutions Ltd is a credit broker and not a lender and is entered on the FCA register under reference 624257You can find FFP Solutions on the Data protection public register under reference: ZA056605
YOUR HOME OR YOUR COMMERCIAL PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
THE GUIDANCE PROVIDED WITHIN THIS WEBSITE IS SUBJECT TO THE UK REGULATORY REGIME AND IS THEREFORE PRIMARILY TARGETED AT CONSUMERS IN THE UK
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