DEVELOPMENT FINANCE

A common-sense approach to development finance

Capital is the key ingredient for every successful development, whether it’s a new build, part-build or conversion. You need an experienced and reliable finance lender with a common-sense approach who can work alongside you and who can access funds quickly. At Bath & West we can strengthen your position by arranging short-term finance on competitive terms and will work side by side with you throughout the period of the loan, ensuring that you only pay for the capital you use.

“We have extensive experience in assisting developers with more complex cases, often with multiple units, and often ‘new build’. Cash flow is key is seeing a development through to a successful conclusion and our products are designed to enable a developer to have peace of mind, safe in the knowledge funds will be available to cash flow a scheme through its life.”

Martyn Smith

Bath & West Finance
Managing Director

Key rates & features:

MAXIMUM LOAN

£2,000,000

MINIMUM LOAN

£100,000

MAXIMUM LTV ON COMPLETION

60%

MAXIMUM LTGDV

60%

BUILD COSTS FUNDED

up to 100%

BUILD COST LIMIT

£1,000,000

COMMITMENT FEE

2%

BROKER COMMISSION

from 1%

MONTHLY INTEREST

from 0.95%

INTEREST PAYMENT METHOD

Rolled-up or Retained

EXIT FEE
45 days interest
MINIMUM TERM
90 Days
MAXIMUM TERM
540 Days
STAGE RELEASES
Monitoring surveyor
STAGE RELEASE FEE
£195 per drawdown

Key Product Criteria*

PROPERTY

Land to be developed to residential or semi-commercial – full planning required before completion

TENURE

Freehold

TYPE OF CHARGE

First charge

BUILDING CONTROL & WARRANTY

Stage releases are tied in with statutory and warranty inspections

WORKS

Large refurbishment and conversions, demolition and ground-up developments, part-built developments.
Pre-commencements of works conditions must be discharged before completion

EXPERIENCE

Prior experience of a minimum of three similar projects

 

* Please refer to the criteria page for standard loan criteria for all products

Case Study

Development, Reading

Our client required a loan to demolish a two-storey detached house and garage and to fund the development of three units. They also applied for enhanced planning, post-completion, to split one of the larger units into two semis.

We were happy to complete the loan on the current planning permission, with the understanding that a revised planning application would be made post-completion. We detailed all necessary requirements for enhanced planning in our offer letter, creating a clear path for the client to follow if enhanced planning was granted.

Loan: £1,529,200
Value: £2,450,000
GDV: 63%
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