This will be determined by a number of factors including your experience, ability to repay and the type and value of security available.
You will pay the lender an arrangement fee, usually around 1% of the amount borrowed. The lender will also charge you an interest rate which is often expressed as a margin over base rate or libor.
CD Property Finance will charge you a fee of around 1% of the loan, but where a fee is paid to us by the lender to us this fee can be reduced or waived.
We need to present a full proposal to the lender and will ask you for details of your experience, financial information and details of the project
Once we have this information we will indicate to you the likelihood of successfully arranging the finance. The final decision rests with the lender.
The lender will make its decision once it has all the facts and information from us. If the loan is approved you should allow between 8 to 10 weeks. This can be less in the case of a refinancing and more where the project is very complicated, especially as property development finance is involved.
A first legal charge over the property and as borrowing through CD Property Finance can only be in a company name they will need personal guarantees. Sometimes life cover is required.
A development appraisal will be needed along with a copy of the planning consent, drawings for the scheme and comparable evidence for the resales. We may also ask for a development cash flow.
As a very general rule you should expect the development to produce a minimum profit after all costs of over 20%.
Most banks will usually only lend where a DETAILED planning consent is in place.
Regardless of what you borrow the lender will normally charge an exit fee expressed as a percentage of either the loan or the Gross Development Value. This is in addition to their arrangement fee and their interest rate. The higher the Loan to Value the higher the exit fee will be. In a sense, the exit fee is their share of the profit.
Most lenders allow you to draw them when needed, but typically once a month.
Yes. You will be expected to provide all your contribution to the total costs when the land is purchased.
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