Residential

Finance for residential developments can be used for new-build site construction, for conversions of existing residential properties into flats, barn conversions and conversions of offices and warehouses, etc.

The developer may ultimately sell on or let out the properties.

Ultimately, the intent is to repay the loan from sale of the property or by transferring onto a lower interest ongoing mortgage with a standard commercial mortgage lender as soon as the property starts to yield rent.

Commercial

Economic changes in the UK have left many sites and buildings unused, including old factories and plants. While often run-down, these locations usually offer parking, utilities, and good transport links, making them attractive for redevelopment.

Rising demand for online shopping has also increased the need for warehousing near major routes, with more businesses seeking to expand storage and distribution.

In addition, government land releases, including former military sites, provide prime opportunities for housing, retail, and community developments.

Mixed Use

In crowded city centres, land is usually at a premium. Local Authorities often insist that new developments or conversions include parking facilities and. potentially, space for local shops.

Additionally, there is a growing trend for sports arenas to also include trading spaces.

You may be planning a mixed-use development such as converting a store into shops with flats above, creating a stadium with retail and conference facilities, or building a waterfront community with housing and a marina.

Whatever your vision, we can help source and arrange funding, often involving multiple lenders for larger projects.

Mezzanine Finance

If there is going to be a funding shortfall because the Senior Debt provider is unwilling or unable to meet the entire funding need, it may be necessary to call on the services of a Mezzanine funder to 'top-up' the loan.

Mezzanine funds are more expensive than Senior Debt.

Mezzanine finance can help bridge costs when a senior lender won’t fund beyond their usual 60%. Some lenders allow it alongside their own funding, with the mezzanine provider taking a lower security position.

Because of the added risk, interest rates are higher and extra security, such as a charge on another property, may be required. Where appropriate, it’s best to plan for mezzanine finance from the outset so all lenders work to a common agreement.

Bridging

Sometimes, depending on the circumstances and the period over which a loan is required, it may be possible to arrange Bridging Finance so that necessary funds are in place as soon as possible.

Following this, a full Development Loan can be arranged and the Bridge paid off.

If you’ve found a site but need more time to finalise plans and secure long-term funding, a bridging loan may help. Secured against your existing property (and possibly the new site), it provides the funds to purchase quickly while giving you time to prepare your development plans.