Development Finance Overview
When it comes to Development Finance of any size or complexity, our team of experts can assist your clients with projects in almost any sector, including; Offices, Retail, Industrial, Hotel and Residential Investments.
Loans available up to £250 million.
Our experienced team maintain long-established close relationships at the highest levels with a wide range of lenders, including specialist, retail & private banks, and family offices.
Every enquiry is manually researched, sourced and underwritten by our team on a case-by-case basis.
Residential Development Schemes
Up to 70% LTGDV (Loan to Gross Development Value) – lenders typically charge c.10% pa, with a 1% arrangement fee & 1% exit fee.
50% to 60% LTGDV – typically charge c.5.5% and c.8% pa,with 1% arrangement fee & 1% exit fee.
The above LTGDVs are usually restricted by the ‘Loan to Cost’, which cannot exceed 90% of the total project costs (unless further security is available).
Commercial Development Schemes
Provided a ‘pre-let’ is in place, then similar LTGDVs and charge rates as above.
Lenders are usually able to provide an interest roll-up facility within their gross loan, typically for a term of up to 36 months.
In terms of recourse, most (but not all) lenders require a minimum cost overrun allowance and interest shortfall guarantee.
For full access to Black Book’s Development Finance services, either: