One of the fastest growing areas of funding, development finance can often appear complex. Development can range from land purchases and ground upbuilds, through to heavy and light refurbishments and mezzanine loans.
Our team has experience working with both residential and commercial property developers to structure the best possible funding solutions for their projects. Regardless of size or location, we can assist and have previously been involved in transactions at varying degrees of complexities, from single unit conversions, right through to major multi-unit developments.
Development Finance Solutions
Whatever kind of development you’re planning, whether residential or commercial, part-built, renovation, conversion or new build, it pays to speak to the experts. We can help finance all types of development from a small single flat renovation through to a large commercial project. If the property is to be let, sold or a holiday let, we can help. And, once your development is complete, our whole of market team can help you re-finance it.
At Oakmead Finance our dedicated construction finance team have experience providing:
- Development finance (Residential and Commercial)
- Light refurbishment
- Heavy refurbishment
- Funding up to 100% of costs
- Low rates starting from 3.25% over the Bank of England Base Rate
- Zero arrangement fee available
- Interest can be rolled up
- Terms from 3-24 months
- Flexible approach
- No maximum loan size
- No experience required
Our commitment to you
Speed of action is often key to the transaction. To achieve this, we will manage every step of the process and ensure everything happens when it needs to happen.
Our fees are transparent and open and they cover the entire process through to completion including:
Initial in-depth discussion about the business plan and requirements.The negotiation of the correct structure to the facility and the level of finance needed to complete the transaction.Application handling and making sure the right people have the right information.Managing the interested parties in the transactions including the bank, the valuer and quantity surveyors.Problem solving and restructuring of the development and finance facility.
How Oakmead Finance can help
Our team of commercial finance specialists have years of experience structuring development finance transactions. By working closely with our construction finance team, we are best placed to advise and arrange facilities through a network of traditional and specialist lenders within the industry. Contact us to discuss your requirements, explore the buy to let options available to you or have us review your existing finance facility.
We were approached by a property developer. He already owned a large piece of land in the south west through his developing company and had planning permission for 15 units, worth around £800,000. He wished to buy the adjoining piece of land to add an additional 6 units to the development. To do this, he needed to borrow £450,000.
He also owned another local development nearing completion. This was currently worth around £1.5 million and had a small loan of £240,000 secured on it.
We met with the client to fully understand his background, his experience and his plans, so that we could build a comprehensive proposal with integrated financial and cashflow projections for the prospective lender.
As we keep up to date with the market, the following day we met with a private bank, who we knew was a new entry into the development finance market.
By using both the proposed development and also the existing developments as security, and using cash projections from the development which was nearing completion as evidence, we were able to show that our client would have cash available to service the debt. Because of this, were able to get the lender to agree to the full £450,000 needed.
As a new entrant to this lending market, we were able to negotiate terms that were significantly better than other existing lenders. The bank agreed the facility at a cost of 1 per cent per month for a maximum of 12 months. This was around 40 basis points cheaper than other options, saving our client around £1,800 per month in interest costs.
The £450,000 loan allowed our client to buy the additional piece of land and increase his company’s pipeline of properties. By dealing to us, he was able to save over £20,000 compared to the quotes he had received from rival lenders.
“I have been absolutely thrilled with Oakmead Finance. They worked on this with a professionalism and a spirit that has been magnificent — consistently, at every stage of every twist and turn. I am genuinely in your debt, and hope over time to be able to give back a tiny bit of all I received from you.”
Oakmead Finance Ltd is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority.
Oakmead Finance Ltd is a company registered in England and Wales. Registered office: 33 Clarendon Way, Chislehurst, Kent, BR7 6RE. Registered number: 09478864.
Development Finance facilities are not regulated by the Financial Conduct Authority.
The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.