Development Finance is short term funding used for construction or refurbishment of property, including:

• Residential
• Purpose Built Student Accommodation
• Commercial
• Retail
• Hospitality & Leisure
• Industrial

Breadalbane Finance have in-house development expertise, including a Chartered Surveyor, to help review and advise on the financial requirements of a project. Understanding development costs, risks, valuations, and processes is essential to getting the best funding for a project.

Our panel of lenders includes high street banks, challenger banks and specialist property funders. Reaching the right lender is crucial to successfully getting development finance, as every lender has a different appetite for the type of development they will fund.

We facilitate development funding from £100k to £30m+. The amount of funding that can be provided by lenders is determined by three key factors:

1. Current value – the value of the site with planning or the value of the property before refurbishment
2. Development costs – these include design and consultancy fees, statutory consents, construction costs and sales costs.
3. Gross development value (GDV) – the value of the completed property assuming all works have been completed.

Our lenders can fund up to 70% of the GDV and up to 100% of the build costs, depending on the development type and size.

A development loan can fund part of the site or property purchase, and once a project is in construction, the building costs are drawn down in stages (usually monthly). The amount that can be drawn down will depend on the value of work completed on site that month. The benefit of drawing down amounts monthly is that the borrower only pays interest on the total amount drawn at that point in time.

Given recent market uncertainty, flexibility is becoming increasingly important; developers need to be able to react to changing conditions and respond quickly to new opportunities. Breadalbane have access to specialist lenders and resources which can provide a range of finance structures to suit every client.

There are several ways that borrowers can repay their Development Finance loans:

• Repaying using sale proceeds from the finished property(s).
• Refinance to a mortgage if the property is to be kept for occupation, investment, or lease.
• Refinance using other short-term finance like bridging or development exit products, which can help realise profits and help fund another future project, without having to wait for the sale of the current project.

Breadalbane Finance also specialise in these repayment options, so we can advise clients on the full financial lifecycle of a property