Securing the finance for your property development is not a quick and easy process. It is crucial that you work with an experienced and knowledgeable adviser who can help guide you through it.
This is not a home loan or investment property application, and as such you should be engaged with a specialist property finance adviser throughout the process. Using the wrong adviser can result in poor presentation, bad advice and inappropriate lenders or products.
The best stage to reach out to an adviser is as early as you can. Making sure that you have received good and accurate advice from the beginning of the process through to the end can ensure that things move smoothly, and that finance is readily achievable when the time comes.
At Lateral Partners, we have dedicated property development specialists that can guide you through the entire process, introducing experts where required, giving balanced advice at all stages and ensuring you obtain the finance for the project.
Once you have secured your land, gotten your consents in place and are ready to push forward with securing finance the process goes as follows;
- As a start we will have a conversation with you about your project to discuss the various funding options available to you and what each pathway looks like.
- After the initial conversation, we will agree on a strategy, what information we require and next steps.
- Once the information has been collected, we will prepare a finance application.
- On receipt of the credit paper, the funder will review it in full and normally call us to discuss the project further.
- Post the negotiation, an indicative offer is normally issued from the lender(s). This outlines their appetite, pricing, conditions and any other material items to address.
- After you have provided a commitment to the lender, we then work through any conditions present.
- Once the key conditions have been ticked off, a formal finance offer is provided. This is a formal confirmation of finance and often binding.
- Then comes settlement day, where the lender will draw down the initial tranche of funds.
- After this, there will be ongoing project drawdowns as the expenses on the project are incurred, and overall project management.
For more information on the Lateral Partners development finance process, and information on property development overall, check out our free guide on Development Finance.
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