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VaughansReal Estate Finance
At Vaughan’s we can arrange bespoke facilities to suit your needs via a wide-ranging panel of lenders.
Development Loan
This can be a new build, conversion or refurbishment covering a single unit through to multiple units built across a number of phases.
A development loan is a short-term funding option, usually for between 6-24 months. It is designed specifically to assist with the purchase costs and build costs associated with a residential or commercial development project.
Investment Loan
An investment loan is usually for a longer term than a development loan and can be used to fund the long term ownership of a commercial property to produce a rental income from such property types:
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- Office
- Retail
- Industrial
Development Loan Process
Delivered in
two parts
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- To purchase the site
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The first element of the funding will ordinarily be used to assist with the purchase of your development site. This may be land where a number of new properties will be built or an existing property that will undergo a refurbishment.
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- To fund the cost of construction
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The second stage of the loan is used to pay for the costs of the build works associated with your project. This is usually drawn in stages, as opposed to being given in one amount at the outset. This often happens once a month as works are completed on the project.
How can I calculate how much funding may be available to me?
The amount of funding that can be provided will be determined by a professional valuation report that provides 3 key numbers:
Current value – i.e. the value of the site with planning or the value of the property prior to refurbishment Build costs
Gross development value (GDV) – i.e. the value of the completed property(s) assuming all works have completed satisfactorily.
Each lender has their own lending parameters that determines the maximum that can be lent.
Each transaction is assessed individually but the funding must be structured in a way to make sure there is enough funding in place to complete the build in its entirety.
What is usual term for Development Finance?
Most development loans will be for a period of up to 24 months, but this will be dependent on the nature of the scheme being funded.
A straight forward refurbishment loan may only be required for 6 months, whereas a multi-unit new build may require 24 months. The term of the loan will allow time for the property to be purchased, developed and then sold or refinanced to repay the debt.
How to repay Development Finance
There are several ways that you can repay your Development Finance loan:
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- Repay the full amount using the sale proceeds from the finished property(s).
- Refinance on to a long-term loan if you want to keep the finished development for yourself or to rent out.
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CONTACT US WITH EASEGet in touch
Let’s start with a conversation …
Address
Bentley, Doncaster, England, DN5 0BE
Call us
Paul Roberts:
07473 795405
07473 795405
Call us
Paul Brookes:
07797 771972
07797 771972
VaughansContacts
Company Registered in the UK
Co. Registration Number: 13630524
Registered Address:
Belmont House, 75 Church Street,
Bentley, Doncaster, DN5 0BE
OurAccreditation
ImportantRegulatory
Alfred Vaughan & Co Limited is authorised and regulated by the Financial Conduct Authority, FRN: 966356. Alfred Vaughan & Co Limited is an authorised credit broker and not a lender. We work with a panel of lenders whose particulars will be supplied upon request to find a potentially suitable arrangement for your consideration.
Our ICO registration number is ZB278346 and you can check via www.ico.org.uk.
Vaughans is a trading style of Alfred Vaughan & Co Limited, registered at Belmont House, 75 Church Street, Bentley, Doncaster, DN5 0BE. Our company register number is 13630524.
Whichever lender we introduce you to we will receive commission from. Different lenders pay different amounts based on different commission models and interest amounts. For transparency we only work with commission models based on a percentage of the amount you borrow and/or a percentage of the facility service fees charged by the lender. The percentage can vary depending on factors such as the size of the loan advance and/or complexity of your requirements. We will sometimes receive fees separately from you; for the avoidance of doubt, these sums would be confirmed in Our Terms of Business Agreement which, if applicable, will be issued to you for your review and execution prior to proceeding. Further details of the commission model, calculation and amount will be disclosed to you throughout your customer journey.
LegalDisclaimer
This website is designed to provide you with general information only and does not attempt to give you advice on any particular financial arrangement or to recommend any particular finance to you. If you have any doubt as to whether a particular financial arrangement is suitable for you, you should contact Alfred Vaughan & Co Limited trading as Vaughans for advice.
Copyright Alfred Vaughan & Co Limited trading as Vaughans. All rights reserved.
Copyright Alfred Vaughan & Co Limited trading as Vaughans. All rights reserved.