Once you have secured your land and have an idea of the cost and end values, it's time to call us to discuss your development plans. We will discuss your financial needs with you and help you choose the right finance products for your project. The type of development project will determine the amount. Once you have determined the amount of funds that you require, we will arrange your finance to meet those needs.
This loan is used to finance a development project that is not yet sold. This loan can also be used by developers to provide some breathing room to finish minor repairs and to find buyers.
Fixed price contracts are a contract you have with your builder. They set the cost of the work and do not allow for any changes. This is a win-win situation for both the developer and builder. The builder can charge higher fees while the investor will know the exact costs, giving them total peace of mind. Fixed term contracts are more attractive to lenders.
When the project is completed and all properties have been sold, the total loan amount is fully paid using the profits.
Professional checks will be required at each stage of development to verify that all building regulations are being followed and that works have been completed according to the expected standards. This can be done either by your architect, or through the NHBC.
It is vital to comply with all building regulations and obtain the appropriate planning permissions. Your Local Authority Building Control Service can grant Building Regulation Approval. If you're building the house yourself, you are responsible for adhering to all regulations. If you hire a contractor to do the work, then responsibility falls on them. However, the owner may be served notices if any regulations are not followed.
When borrowing finance, it is important to consider any additional costs. You should consider exit fees and legal fees as well as lender fees.