Available to developers for periods from 3 to 24 months for residential, commercial and mixed-use projects including the refinance of completed properties.
Individually structured loans for residential and commercial projects. Finance for site purchase, construction and fees, refinance, equity release and to provide working capital or where the project has encountered unforeseen additional costs or delays. Refinance to unlock capital from completed projects.
Interest can accrue, with repayment of capital and interest from sale or refinance.
The terms below are indicative and we will always welcome a phone call to tell you more.
3 - 24 Months
3 - 12 Months
A) £250,000 - £499,999
B) £500,000 - £2,000,000
£250,000 - £1,000,000
A) 65% GDV
B) 65% GDV
A) 1.00% p.m
B) 0.90% p.m
New build, conversion, refurbishment and equity release
Residential development projects
Commercial development projects (subject to adequate pre-lets)
Regulated Residential Development
Individuals and Partnerships
UK Limited Companies and Limited Liability Partnerships (LLPs)
Off-shore borrowing entities in approved jurisdictions
Non-conforming, remote or unusual properties
The ABC of Development Finance
To finance your current development, or to release equity to fund the next one, discover our approach to property development funding.
What is property development finance?
Property developer finance with Alternative Bridging Corporation covers a wide range of building projects, from ground-up construction to renovation across residential developments and commercial properties (including office blocks, industrial units etc).
Our residential property development loans also enable developers to refinance or release working capital in ongoing projects.
Is a property development loan the same as residential or commercial bridging finance?
Effectively, yes. Some lenders may distinguish between a bridging loan for purchasing a property and property development finance which, as the name suggests, is designed to provide working capital for development. In reality we’ve always found the distinction to be a fairly artificial one, so our development funding can be used for purchase, refinance, development, equity release or as an exit loan.
What is a property development loan used for?
Property development finance can be used in a wide range of ways.
Loans for building and development:
Our finance for property development can be arranged over up to 36 months, which gives developers the time to take ‘ground-up’ projects from bare land to completion.
Unquestionably the simplest and least expensive property development option not including structural changes. The loan can be used to cover the cost of repair and minor alterations and aesthetic improvement of floors, ceilings, walls and woodwork.
Put your development loan to work on conversion, extension, moving internal walls, building partitions and rewiring and plumbing work.
Loans for capital:
Not every development goes to plan. Capital that once seemed sufficient to complete a development can be eaten up by unexpected delays and technical issues, leaving you with the unwelcome ‘chicken and egg’ prospect of not being able to sell/let the property because it is incomplete, and not having the working capital to complete the project.
Our UK property development loans help developers out of this financing cul-de-sac, by offering financing based on the value of the completed project. This injection of additional funds ensures you are able to complete the project and start generating a return.
Every property developer is always looking for the next opportunity, but that next opportunity can be hard to leverage when all your capital is tied up in existing developments.
Our exit loans enable you to release the value in your development early, so you don’t miss out on the next prime opportunity.
How much can I borrow?
For residential and commercial properties, our development finance starts at £500,000. The maximum loan is £10,000,000.
In determining the maximum loan available to you we use LGTDV (loan to gross development value) which looks not at the value of the land or property now, but its anticipated value once it has been built/redeveloped.
For residential property, assume 65% of GDV/80% of cost. For commercial property we work on a maximum of 60% GDV/80% of cost basis.
Can I get 100% development finance?
Not usually, but talk to us if you believe you have a particualrly compelling case or have additional security to offer.
How do I maximise the chances of approval of my loan?
ABC, like all development finance lenders, is eager to lend. The more information and assurance you can provide, the greater the likelihood of a swift and positive decision.
You can give us that assurance in a range of ways:
Provide supporting evidence
The more detail you can provide to support your predictions, the better. Your draft projections, therefore, might include:
- Cost analysis of improvement and renovation works
- Market comparison of local sale values
- Expected occupancy/rental on completion
Demonstrate a track record
Projections are always more compelling when they come with a track record of success. Where you have previously developed residential or commercial property, ensure your portfolio/application reflects your experience.
All our published terms are indicative, and all our UK development finance is individually structured to your circumstances. Offer some form of additional security, therefore, may make approving your loan an easier or quicker process, or enable us to offer a larger sum.
Loans for property development with ABC – what are the benefits?
Size, speed and individual tailoring of arrangements are the key benefits of choosing ABC. Attempt to raise funding through a traditional bank and your options may be far more limited and the processing time much longer. That can restrict your development options and increase delay – both factors that can damage the financial performance of any project. An added benefit is prompt payment of stage advances during the construction period.
Commercial and residential development loans with ABC are different. You submit your request and details of the security. We provide a decision in principal almost immediately. That then leaves you free to press ahead with your property purchase or redevelopment while we get everything finalised.
Will you say yes?
We say yes all the time. Partly, that’s because we’re the ones doing the lending and make the decisions, so we don’t have the pressures and limitations other lenders might have. But mainly, it’s because we approach the whole concept of development finance from a different perspective to many of our competitors; we work harder to find a reason to say yes, swiftly and simply.
We want to say yes to you!