Property Development Finance is offered by The Bank of Scotland as a way for property developers to fund their property development projects. The loan is secured against the land or property which will then be sold on for profit once the development is complete.

Experienced developers use property development finance even if they have sufficient funds for their building projects. This is because it allows them to run multiple projects at the same time, with the same equity down. By doing this they are increasing their profits in the long run, as well as minimizing the risk should there be a downturn in the market, in a particular area.

New Property Developers have a chance at getting accepted for funding too, as long as they are professional and can prove their ability to manage the development of a property, getting accepted shouldn’t be a problem.

• A minimum of £50,000 can be borrowed with no upper limit
• Available anywhere in the UK
• Loan is available for all types of property
• Up to 90% of costs can be covered
• Terms are for 3 to 18 months
• Poor/Adverse credit is usually okay
• No income proof is required

Individuals, limited liability partnerships, and limited companies are all eligible to apply for property development funding. An SPV (special purpose vehicle) is required by The Bank of Scotland for the scheme to be placed in; a limited company formed for the sole purpose of developing a property. This offers far more protection for both the bank and the developer.

Once funding has been approved, the funds become available at set periods during the development as work is completed. The percentage amount drawn-down at each stage is determined by The Bank of Scotland’s surveyor reports.

Property Development Finance is often the better alternative to commercial mortgages or buy to let mortgages for property developers.