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100% Development Finance 2018-04-27T06:25:05+00:00

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.

The process

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.

Timescale

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.


Read what our clients have to say about us

I would not hesitate to recommend Fox Davidson to family and friends. I am a first time buyer and therefore the house buying process was a little daunting to start with but I was kept fully up to date throughout the whole process to the point where I would receive an update email at least twice a week.

I was also extremely pleased to find that as well as assisting with the mortgage I was also being provided assistance with home and life insurance. The service I have been provided is definitely good value for money and I am very grateful to everyone at Fox Davidson who has helped me.

Miss R Power , Bristol

Having been let down by another mortgage broker (who seemed to only want to assist with a mortgage if we took other products too) I stumbled across Fox Davidson. As I am based half in London and half in Bristol, they seemed the perfect fit. Having connected with them and receiving prompt, relevant and helpful advice at the outset of our property search, I had no hesitation in coming back for the mortgage itself.

The mortgage application process was rendered painless and they bent over backwards to help with the sale. They also were extremely helpful and supportive when our first purchase collapsed, also managing to make mortgage application #2 equally as smooth. Thank you so much!

K Gibson, London

After using Fox Davidson for my first buy to let purchase I didn’t hesitate to get in touch again when the time came to buy a second property. Being an expat living and working in Thailand I had found through my own research that the options available to me would be limited, however I needn’t have worried. Fox Davidson found me a mortgage that suited my circumstances  perfectly. They have helped to make what could have been a complicated process very simple and stress free.

Great people, Great knowledge, Great service.
Thank you Fox Davidson.

Mr Christopher Hoare , Thailand
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