Property Development Loans Terms
Loan amounts: Minimum £50,000; maximum £2,000,000
Loan to Value: Maximum 65% of both the purchase price/initial value; and the end value (including any interest roll).
Security: First charge on freehold or long leasehold (min 50 years remaining) residential or commercial land or property situated in England or Wales.
Planning Permission: Detailed planning permission must have been granted (where applicable) before we advance funds for the work; though it does not necessarily have to be in place for the initial purchase.
Loan Term: 3-18 months.
Arrangement Fee: From 1% of the loan – this can be added to the loan.
Interest Rate:
From 2.75% above Bank of Scotland base rate. The
total cost for comparison is 11.5% APR typical.
Exit Fee: From 1% of the Gross Development Value – based on sale price(s) or valuation, whichever is applicable.
Valuation Fee: 0.25% of the initial site/property value, plus vat (subject to a minimum of £500+vat). Reinspections are required prior to each stage payment release, at a typical cost of £100+vat per visit. Solicitors: We will appoint our own solicitors.
The fee scale is as follows:
Purchase Price
/ Value of Property
£ |
Legal Fees
+ VAT
£ |
| 0 – 50,000 |
595 |
| 50,001 – 100,000 |
665 |
| 100,001 - 150,000 |
725 |
| 150,001 – 200,000 |
765 |
| 200,001 – 250,000 |
815 |
| 250,001 – 300,000 |
869 |
| 300,001 – 400,000 |
915 |
| 400,001 – 500,000 |
965 |
| Over 500,000 |
By individual quotation |
|
