Local Development Funding
What is development finance? Development finance is financing for commercial or residential property developments, i.e. construction projects, and is usually advanced as a loan towards land purchase and a further loan in stage payments for development costs.
Here are some loans that HP Kapital has recently arranged for clients.
- A loan of £500,000 to acquire the site and £1.3 m develop a site for luxury flats in near Derby for an experienced developer. The loan represented 100% of the total cost of the project in this instance but only 60% of GDV.
- A loan of £650,000 as 100% of the Development cost as the site was out right owned by the client.
- A loan of £450,000 for the land and arranged £2.7m for the development of 13 Eco- houses in Kent following client improving the planning consent.