Lenders offering property development loans will assess each application on its own merit and consider the following factors when deciding the maximum they can offer to lend:
·The day one advance required - the amount you need upfront so the development can begin. This value is typically restricted to 65% or 70% of the value of the property.
·Loan to cost ratio - how much you want to borrow, as a proportion of the total development cost. Maximums are often around 80-90%.
·The loan to GDV ratio - how much you'd like to borrow, as a proportion of the anticipated property value once the development is complete. This maximum is usually somewhere around 60% to 70%.