Blogs

Why Private Credit Should Be Discussed Before the Funding Becomes Urgent

Private credit is often considered when a transaction has become time-sensitive, conventional lending is unable to meet the requirement, or a funding deadline is approaching. However, one of the most important considerations in specialist finance is not simply how quickly capital can be arranged, but when...

Education Hub

What Do LTC, LTV and LTGDV Mean in Development Finance?

LTC, LTV and LTGDV are three of the most important measures used in development finance. They all describe leverage. But they measure it against different parts of the project. Broadly: LTC – Loan to Cost compares the loan...

Can a First-Time Developer Get Development Finance?

Yes, a first-time developer can potentially obtain development finance. Not every lender will consider a borrower without a completed development track record, and the terms available may differ from those offered to an experienced developer. But a lack of previous developments does not automatically...

What Exit Strategies Do Development Finance Lenders Accept?

A development finance lender needs to know how its loan will ultimately be repaid. That repayment plan is known as the exit strategy. For many property developments, the exit will involve: selling the completed development; selling individual units; refinancing onto longer-term investment finance; refinancing...

Do You Need Planning Permission Before Applying for Development Finance?

You do not always need full planning permission before applying for development finance. But planning status can materially affect: which lenders are available; how much they may be prepared to lend; how the property is valued; when development funds can be released; and how much equity...

How Do Mezzanine Finance and Equity Investment Support Property Development?

Property development often requires more capital than a senior development lender is prepared to provide on its own. The developer may therefore need to fund the difference through: additional cash; mezzanine finance; equity investment; additional security; or a combination of these. Mezzanine finance and...

How Do Staged Drawdowns Work in Development Finance?

Development finance is rarely released as one large payment at the beginning of a project. Instead, the facility will commonly be structured through staged drawdowns. An initial advance may help fund the acquisition or refinance existing debt. The development funding is then...

How Can You Finance an Office-to-Residential Conversion?

An office-to-residential conversion can potentially be financed through specialist development finance, with the facility structured around the acquisition or existing property value, the cost of the conversion works and the expected value of the completed residential scheme. But converting an office into homes is not simply...

What Is Development Exit Finance and When Is It Used?

Development exit finance is short-term property funding used when a development has reached, or is approaching, completion and the original development facility needs to be repaid or replaced. A developer may have completed the construction successfully but still be waiting for: individual units to sell; a...

Can You Get a Commercial Mortgage With Adverse Credit?

It may be possible to obtain a commercial mortgage if you or your business has experienced adverse credit. A previous: County Court Judgment; default; missed payment; mortgage arrear; insolvency event; or other credit issue does not necessarily mean every commercial lender will decline an...