100% Development Finance
Fox Davidson specialise in property development finance. Typical development lenders require a developer to put in at least 25% of total costs and of course the more funds a developer can put into a deal the better the terms.
If a developer does not have any funds to put into a deal we have partnered with a JV partner that will fund 100% of total costs including land acquisition costs and build costs.
100% development finance Criteria:
- Experienced new build developers
- A target GDV of £2m – £15m.
- Multi-unit developments only with a maximum of £700k value per unit around the M25 and £500k elsewhere in England, Wales & Scotland.
- Lending secured on new-build or conversions under PDR.
- Multi-unit residential sites with a small element of commercial
- Planning permission is a must
- Funding up to 24 months
- We lend throughout England and Wales and the central belt of Scotland.
- Interest is charged at 12%pa on the finance, as it is drawn down
- Personal Guarantee (PG) required, unsecured and capped at £500,000
How does it work?
JV partner will set up a Special Purpose Vehicle (SPV) Ltd company and purchase the land and will pay for all acquisition costs.
Developer is responsible for managing the development including appointment of professional team and contractors.
JV Partner use a QS to monitor and authorise release of funds.
Profit share is 60% in favour of developer.
Fox Davidson will require:
- CV’s including previous development projects.
- Development appraisal including cash flow
- Full details of the planning decision notice.
Fox Davidson will submit the documents to the 100% development finance JV partner and confirm if it is a project they will fund.
If successful, we will complete the application form for the lending. We will instruct the solicitors and surveyors. These costs will need to be covered by the developer and are refunded on completion.
A minimum of 4 – 6 weeks for legal and 3 weeks from instruction for the survey.
Valuations – 3 weeks from the date we formally instruct for site inspection and report to be produced.
Monitoring survey timescale is 4 – 6 weeks.
Once the above has been received and is satisfactory exchange can take place followed by completion of the site purchase.