Development Finance

Available whether you are building a block of apartments, an estate of individual properties, an industrial unit or even a shopping precinct, etc. In these situations financiers use the development as security and lend in stages so that in theory their security is enhanced as they drip-feed money into the project.

Repayment is usually achieved either from sale of completed units or conversion to a long term loan to be serviced perhaps from rental income or delayed sale of the whole unit.

The borrowing costs and interest are generally paid at the end of the project

Bridging loans

Can be arranged to fund the purchase of an item (usually a property) pending the sale of another.

The loan can be either “closed” (ie where contracts have been exchanged and the period of borrowing is known at the outset) or “open-ended” (ie where the date of the repayment of the loan has not been determined). In the latter case interest is sometimes paid as it accrues or in other cases “rolled over” and paid at the end from the sale proceeds.

The property to be sold and sometimes also the property being purchased form security for the lender.