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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 the land purchase and a further loan in stage payments for development costs.

Here are a number of examples of loans that HP Kapital has recently arranged for clients.

  • A loan of £500,000 to acquire the site and £1.3 m to 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 outright 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 the client improving the planning consent.