Property Development Finance — What are your options?
Being a property developer, investor, or landlord, you need property development finance every now and again to start with your next project. With emerging alternative lending market, property developers have a myriad of development finance solutions. Here, we will briefly discuss some financing solutions that you may avail of. You can approach an alternative lender to gain insight into any of these development finance choices and to have tailor-made solutions suiting your requirement.
Commercial Mortgages
If you need to purchase commercial property like offices, shops, warehouses, and other such properties that are not considered residential property, opt for commercial mortgages. This financing solution works the same way as private mortgages do, thereby enabling you to extend the period of the loan.
Another situation where a commercial mortgage is suitable is when you have a large portfolio and want to extend it by buying more properties and by merging multiple properties into mortgage.
Buy-to-let mortgages
You can go for buy-to-let mortgages if you want to buy a property to rent out. This option is usually more expensive than normal mortgages, but it would help you emerge as a property investor. Approach an alternative lender offering property development finance solutions to get tailor-made terms and conditions.
Auction finance
Auctions are indeed a quick way to get a property at an affordable price. Once you have made the winning bid, auction houses require the funds in the shortest time possible, which means you have to secure funding. You can approach an alternative lender offering loans with less paper work, so you can secure your property without any hassle.
Bridging finance or development finance
The next type of funding is bridging or development finance, which means any short-term funding aimed at helping you pay off building and development costs. All terms and conditions of bridging finance or development finance would be depending upon how big your project is.
You can approach a reputed alternative lender — Challis Capital — providing tailor-made financing solutions. Challis Capital is a company that offers bespoke financing solutions to cater to the different requirements of property investors.
Take a look at the benefits that Challis Capital offers:
- Stretch senior construction finance to 75% GRV and 90% of TDC
- Mezzanine finance funding the equity gap
- Preferred equity solutions
- Joint Venture & Equity Funding
- Development management
- Distressed/workout solutions including for incomplete property developments
- Credit enhancement strategies
- Construction finance with no pre-sale requirements available
- Solutions for offshore developers
- Unsecured corporate facility for property developers