Development Finance - Increasingly available to first time developers

If you’re considering property development for the first time, there’s every chance you’ve been considering your finance options.

Arguably, development finance has never been easier to access, however it will pay dividends to do your homework.

Many lenders are keen to lend to experienced developers who have already had success in developing property. Whether it’s renovation for resale, buy to let or MHO, many lenders want to know they’re dealing with someone who has learned the ropes and made their mistakes already. In their eyes, this will now represent a lesser financing risk.

So, if you’re a first-time developer, what’s the best finance route for you? The answer is, it depends on what you’re trying to do and how much you wish to finance.

It’s also worth bearing in mind that not all first-time developers are created equal. While many may be brand new to property other than the home they live in, others may have spent many years involved in commercial or residential property in some form and know their way around how to make a sound investment.

Having said that, by working with the right finance partner, it is certainly possible for anyone with the right plan and means to secure development funding.

Speaking of the right plan, it’s important to give some detailed thought to what you’re looking to do before speaking to lenders. Feasibility is key and the more organised you are in being able to present your ideas for your venture, the better you are placed to secure finance.

The numbers simply must stack up, regardless of the type of development finance you ultimately secure.

For more information about securing your first-time developer finance, get in touch and we’ll be more than happy to discuss your funding options with you.

(First Published November 2018 Cornerstone Finance - https://bit.ly/2B7LYX3)