Property development finance is available to any property developer who needs some extra funding for the building projects. The loan is given to allow the property developer the funds to increase the price of their property so that it can be sold for profit.

It is unlike the commercial mortgage and buy to let mortgages and is often seen as the better alternative for many property developers. The difference is that the loans are drawn down as the development work is completed. These stages will have been agreed upon and the percentage amount released at each stage is determined by Halifax’s surveyor reports.

Experienced property developers with enough cash to fund the whole of their projects still use property development finance as a way to secure equity on multiple properties, with the same money down. This allows them more profit in the long run and more secure assets should there be a downturn in the market.

Requirements for Halifax Development Finance:

• Individuals, liability partnerships, and Limited companies are eligible to apply.
• SPV (special purpose vehicle) is required for each scheme
• Must be aged 18+
• Available anywhere in the UK (Non-UK residents okay to apply)
• Poor/Adverse credit is usually okay
• No income proof is required
• Available for all types of property
• New Property Developers are able to be accepted

There is no upper limit on the amount to be loaned, with £5 million being the average higher amount. The loan minimum is £50k, however, most loans would be above the £200k mark.

The interest rate fees range from 5%-12% pa depending on various factors such as the project, location, loan amount and the property developers experience.

A decision on the application is made the same day of application, and funds will become available in a short period after.

If you’re a property developer in need of additional finance, a Halifax development loan could be for you.