Lenders will require comprehensive details of the proposed development, financial projections, and developers experience, to consider a peak debt facility request.
Information on the proposed development should include background information on the site, copies of the approved planning consent, details of what you are planning to build, and the construction methodology being used.
Timing of the proposed phasing, including phased start dates, phased completion dates, and expected unit sales per month, is very important to lenders assessing the viability of these schemes.
Financial projections, referred to as development appraisals, will include both the costs incurred to date (for example, to acquire the site), the total costs required to construct the proposed development, including professional fees, and forecasts for the gross development value once completed.
Lenders will also want to know details of your experience as a developer and how this relates to the proposed scheme, along with that of any main contractors or professional firms with design responsibility (such as architects, structural engineers and so on).
Whilst this is not a comprehensive list, it will provide a lender with the initial information required to consider whether they can issue terms for a development. Once terms are agreed, site and/or specific transaction requirements will be advised, along with the requirement for an independent valuation and initial quantity surveyor report to be obtained.
London Wall offers bridging loans and development loans to new and existing clients. We have expertise in lending against residential properties and commercial properties. Our loans are classified as unregulated and therefore the property being offered as security must not be your place of residence.