Simply Mortgages

Simply Mortgages can arrange the finance you need to fund your development project



We can arrange borrowing from anything between £100,000 to up to £25m. Flexible terms are available depending on the size and the requirements of the project. Typically terms can range from between 3 months to 3 years.

Maximum available borrowing is 75% of gross development value (GDV). The deal can be structure with various different interest roll up and serviced debt options depending on your preferences.

The majority of development finance lenders will offer an initial loan based on the purchase price. The lender will subsequently fund 100% of the cost of works which includes all the trades required to complete the project. This ensures that the works are completed, and the development is finished and ready to be sold or refinanced.

We can arrange Light Refurbishment which typically includes unhabitable and run down properties and Heavy Refurbishment Finance which involves structual changes, conversions of existing buildings such as Barns and also turning previously commercial property into residential dwellings.

We also work with a number of key lenders to fund both large and small scale ground up housing developments.

Development exit finance is used when the development is complete but some of the units still remain and have not completely sold. Arranging development finance means you extend the time you have available to sell the units.

This kind of finance also gives you the additional benefit of increasing the borrowing based on the current project value prior to sale of a site in order to release cash which can then be used to allocate to a new project. The advantages of exit finance are the lower rates available compared to development finance and rolling up interest payments means you are not required to service the debt until the remaining units have sold. The majority of exit finance products allow a maximum of 75% loan to value and generally allow a 36 month period to give plenty of time to sell the units with no exit fees payable on redemption of the loan.

For experienced developers, it is possible to arrange 100% of the funding for the project. This is known as joint venture development finance which allows the developer to fund the scheme without putting in any of your own funds.

A development finance lender or joint venture partner will work with the developer to provide 100% of the costs in return for a share of the profits from the sold units, usually in the region of 40% to 50% of the profits with a legal agreement drawn up to protect both parties.

It is usually a requirement that the development has a gross margin of 20% and additional security will usually be required. The additional security can include existing buy to let properties. Lenders can also secure the debt against existing developments that have not yet sold. This is achieved by the lender and/or partner placing a charge over the additional security.

Simply Mortgages work with various different funding partners and lenders as well as private individuals. We have worked hard over the years to establish good relationships and our experience means we can find the right lending partner who will be happy to lend to you and the subject development. 

We will work with you to prepare your comprehensive lending proposal including CV’s detailing relevant development experience. The appraisal on the site including build costs and timescales, cash flow, expected gross development value versus site acquisition costs, full planning information and finally a breakdown of your assets and liabilities. 

The next step is to contact us on the number below to discuss your requirements in more detail and then we can put you in the best possible position to fund your next development.

Find out more about how we can help you with your development finance requirements by calling us on 01772 217917. Alternatively send us an email, we guarantee to respond to all enquiries the same day.