The size of the development loan needed by the sponsor is calculated according to the actual costs of the project. The costs include the purchase of the land with all the expenses like stamp duty, legal and others, build costs together with any other associated costs until the project is finished.
In a development finance facility the funds will be released by stages (monthly or quarterly) following the project progress.
The development finance facility is also used to support most of the PRS schemes
PRS Finance – Private rented sector
PRS- Build to rent expression is employed in the UK when people want to describe the private building to rent out.
The properties are owned by private landlords who can be companies or individuals.
We at property finance partners work closely with real estate funds and alternative lenders and that offer high LTV as well as JV partnership and equity investments in different PRS projects all over the UK.
It is advisable to use a development finance calculator to understand all the costs.
To find out how we can help you to raise development finance for your PRS project, call Property Finance Partners (development finance broker) today on 020 3393 9277