Property Development and Construction Capital
Probably the most difficult and tortuous part of acquiring land for property development, developing land already owned or buying property for refurbishment and re-use, is obtaining construction capital or finance for the project. Property development loans and construction capital can be secured for many development projects both residential and commercial:
- Greenfield development loans
- Brownfield development loans
- New build loans and steading conversions
Typically, some of the requirements to qualify for this type of property development and construction capital finance are:
- providing a deposit, typically 25 – 40% of the value or cost of the property concerned, though less in some cases
- providing an equity contribution if the deposit available is less than the minimum (25 – 40%) of the value of the property
- establishing the capability to repay the loan at the end of the contract term
Murray Commercial Finance are aware of the needs of developers, architects and constructors who seek finance for these types of project.
Action on your enquiry for property development and construction capital commences immediately after the initial consultation to ensure you receive an indication of acceptance within days.
Your options between the types of rates (fixed or variable) and the term of the loan including possible early redemption will be examined. Time will be given to ensure you have the best loan to value amount available.
Affordability will be considered, so that interest and capital repayments can be structured flexibly to reflect the stages of the project, particularly examining interest only options during construction phases.
Your banking relationship will be reviewed to see if alternative arrangements may be more suitable.