Welcome to Fox Davidson, we are a specialist development finance broker in the South West. We work with developers to secure market leading finance terms for development sites across Devon. We have complete access to the development finance market and are on the panel of all the UK’s main development finance lenders.
If you decide to work with Fox Davidson we will acquire the relevant information on you and the development project and will match your project with the correct funding partner, taking account of costs as well as timescales and the type of development.
Fox Davidson Commercial Finance work with Devon developers to fund projects from £300,000 and up to £100 million. We can fund residential & commercial developments including student accommodation, retail units, hotels and large commercial to residential permitted development finance schemes.
What are the different types of Development?
Development finance will fall into several different categories depending on the level of work involved. The different types are:
Light refurbishment development finance applies to the redecoration of a property or the replacement of bathrooms and kitchens. So long as the work does not need planning, is not structural or doesn’t involve a change of use of the property then lenders will class the development of a property as ‘light refurbishment’.
The heavy refurbishment of a property will involve structural changes, a change of use, maybe from C3 residential use to C4 HMO use. Heavy refurbishments may be completed under permitted development or may need planning permission.
Conversions & New Build
Property development finance for conversions can be completed under permitted development or may need planning. Conversions include the development of a commercial unit into a block of apartments.
New build developments from the ground up may involve the demolition of an existing building or the development of land into multiple new build houses and/or apartments.
What are the terms for property development finance in Devon?
The lending terms will vary depending on several factors including; the developers experience, the amount of money they can put into the deal on day 1, the loan amount and the type of property being developed. The typical terms for lending are:
80% of total costs including the land purchase price, the stamp duty, all professional fees, and 100% of your build costs.
The maximum loan to gross development value is 75% or less, depending on the lender
Joint venture equity funding of up to 100% of ALL costs are possible using our joint venture partners
What profit does a developer need to make?
The minimum amount of profit a developer should be making from a project is 15%.
Is development finance possible without planning permission?
Almost all lenders require planning permission. A solution we have is to secure bridging finance on the land or property with a view to acquiring the development finance. Once planning is in place we can replace it with development finance.
Bridging finance is a short-term loan secured on property or land in the UK.
How quickly can I secure property development finance?
The lenders we work with are focused on lending funds for property development finance only. This means that fast decisions can be made and with a deal presented in the right way we have secured funding in as little as 3 weeks. The speed at which funding can happen is determined by the developers’ ability to get the necessary paperwork in place and for the initial development appraisal surveys and valuations to take place. A solicitor with plenty of experience of securing finance for property developments is also essential.
What paperwork is required for a property development finance loan?
- Developer CV’s showcasing previous developments
- Development appraisal including build costs and schedule of works
- Details of your professional design and build team
- Due diligence – Proof of ID and proof of funds
Further paperwork may be required depending on the lender and/or the proposed scheme.
Contact us to discuss development finance Devon
To discuss property development finance in Devon and across the South West please do contact us. You can complete the form below or call our Bristol head office on 01179 8979050. Initially we work by phone and email. Once we have confirmed terms and you are happy to work with us we will meet you in person and visit the development site with the lender.