There are a number of different projects that development finance can be used for, including:
These can be for commercial, semi-commercial or residential developments, and for single or multiple units. When considering a new project, you’ll also need to acquire all the relevant planning permissions and comply with building regulations.
You’ll often need to speak with a property finance broker to work out whether your project falls under light or heavy refurbishment. In general, light refurbishment is limited to mainly aesthetic improvements to a property, while heavy refurbishment usually involves structural changes. A new kitchen, windows, or central heating installation will fall under light work, while extensions, electrics, and rebuilding counts as heavy.
Once you’ve found a site and have planning permission it’s time to get in touch with a property finance broker to work out the amount you can borrow. The funding will be determined by land and development costs, lender fees, and professional costs. Development loans also usually include contingency costs at 15-20% which are set aside to cover unforeseen expenses. In general, we can secure loans of up to 100% of development costs and 70% gross development value.
Alpha Capital is trading style of Alpha Capital & Debt Advisory Services Ltd, Company Number: 12557280.
Alpha Capital and Debt Advisory Services ltd is an Appointed Representative of Acorn to Oaks Financial Services ltd which is authorised and regulated in the UK by the Financial Conduct Authority (“FCA”) with firm reference number 486131.
We may receive payment from the finance provider should you decide to enter into an agreement with them.