Property Development Potential: Greenacre Financial Services’ Specialised Mortgage Solutions
The dream of building or developing residential property has always been a compelling one. Whether you’re looking to construct a single house, build a cul-de-sac of family homes, or undertake a larger-scale housing project, access to the right financing is crucial.
This is where Greenacre Financial Services steps in, offering specialised housing development finance solutions that cater to a wide range of property development needs. In this blog, we will explore how we can help turn your property development aspirations into reality.
Understanding Housing Development Finance
Firstly, it’s essential to have a clear understanding of housing development finance before drawing up plans and starting to build a property or two (or more). Development finance, also referred to as housing development finance, property finance, or development financing, represents a form of secured business loan with a short-to-medium term focus.
Its primary application is typically in property-related projects, encompassing renovations, conversions, land acquisition, and property construction. Property development finance serves a wide spectrum of clients, including individuals, property developers, and businesses of varying sizes.
In contrast to mortgage finance, which commonly extends over several decades and relies on the current value of a property or land, development finance adopts a different approach. It operates within shorter timeframes and hinges on the anticipated gross value of the property or land being developed.
Development finance is a unique category within the mortgage industry, and it requires specialised knowledge and tailored solutions.
How does development finance work?
When it comes to development finance, the borrowing capacity hinges on the anticipated value of the asset, whether it be the property itself or the land, upon the completion of the project. Referred to as the Gross Development Value (GDV), it serves as the pivotal factor. Typically, property finance lenders tend to favour projects where the total expenses are projected to amount to 75% or less of the GDV. If the development costs are expected to surpass this threshold, the loan application might face rejection.
After the approval of a development finance loan and the mutual agreement on terms, the lender will disburse an initial portion of the loan. Subsequent capital releases will occur at designated intervals as various phases of the development reach completion. Importantly, interest will only accrue on the funds that have been disbursed. This distinctive feature sets it apart from traditional bank loans, as there are no monthly repayments to be made.
It’s not uncommon for a lender to schedule visits at different intervals to get updates on how the development is going and ensure all is going to plan and on schedule.
Your Partner in Property Development
Greenacre Financial Services has established itself as a trusted partner for individuals and businesses involved in property development. Our Specialist Mortgages range includes a variety of financing options tailored to different needs and project sizes. Whether it’s a single home or a ground-up development, we are here to help.
One of the key factors that make property developments a good investment are competitive loan terms and interest rates. Additionally, understanding the GDV of your development project is crucial for effective financing. Greenacre Financial Services will assess the GDV of your project to ensure that you receive the appropriate funding to cover all expenses and achieve your profit goals.
For larger developments involving multiple units, it is important to agree on how the loan will be repaid as it is unlikely that all units will be sold on the same day.
Types of Loans
Greenacre Financial Services doesn’t offer a one-size-fits-all solution; housing development finance is just one of the type of loans that we offer. We provide a range of loan types to suit different property development needs including:
- Equity Release: Unlock the value of your property while still living in it.
- Contractors: Tailored mortgage solutions for contractors with varying income structures.
- Self-Employed: Mortgages designed to meet the unique financial needs of self-employed individuals.
- 5 x Income: Access to mortgages up to five times your annual income.
- Second Charge Lender: Mortgage options that allow for a second charge on your property.
- No Deposit Mortgage: Financing without the need for a traditional deposit.
- One Year’s Accounts: Mortgage solutions for those with just one year of business or financial history.
- Mortgage After Retirement: Tailored mortgages for retirees or those approaching retirement.
- Buy to Let: Financing for purchasing properties with the intention of renting them out.
- Credit Issues: Mortgage options for individuals with credit challenges.
- Exceptional Circumstances: Customised solutions for unique financial situations.
- Guarantor Mortgages: Mortgages with a guarantor to support your application.
- Self-Build: Financing for those constructing their own homes.
- Bridging Finance: Short-term financing to bridge gaps in property transactions.
- Complex Income: Mortgages for individuals with complex income structures.
- Help to Buy: Mortgages tailored for the Help to Buy scheme.
- Large Loans: Financing options for high-value property purchases.
- High Net Worth: Mortgage solutions catering to individuals with significant assets.
- Private Bank: Access to mortgages through private banking services.
- Short Lease: Mortgages for properties with shorter lease terms.
- Shared Ownership: Financing for shared ownership properties.
- Commercial Property Loans: Mortgages designed for commercial property purchases and development.
Housing development finance is designed to fund the construction or redevelopment of residential properties in villages, towns and cities, including family homes, apartment complexes or entire housing developments.
Time to get started on your project
Embarking on a housing development project, whether it’s a single residential property or a large-scale development, requires careful planning and access to the right financing. Greenacre Financial Services, with our Specialist Mortgages range, offers a comprehensive suite of solutions to support your property development ambitions.
From flexible loan terms and competitive interest rates to a focus on both residential and commercial properties, we are here to be your trusted partner in the world of property development finance. With our expertise and tailored financing options, you can turn your property development dreams into reality.
We’re here to support you every step of the way with a range of specialist services including protection and insurance. For more information about any of our services, get in touch by calling us on 0203 3939 222 or email info@greenacrefs.co.uk.
