Whether you are a complete newbie or a seasoned property developer with years of experience, one thing is for certain, property development is seldom plain sailing.
Even the most carefully laid plans for new developments are susceptible to variables often beyond the control of developers.
Delays with planning consent, unforeseen planning conditions, predicting the end value of development at the point of sale, increased construction costs arising from increased material costs, market fluctuations, contractual disputes and basic issues such as; ground condition and occupancy are just a few key considerations.
Contingency planning is crucial, as projects can often overrun. Adequate finance needs to be in place, to not only ensure that projects are completed within budget, but also to help counteract some of the less desirable events/issues that can occur throughout the lifespan of a project.
When all else fails
Inevitably, no one has a crystal ball to be able to see into the future and know exactly what lies around the corner. At Newable, we have worked with property developers to overcome a range of issues mostly relating to finance.
Knowing about the different types of property development finance available should the need arise, is essential for future planning, sustainability, growth and exit strategies.
It is therefore recommended that anyone looking to develop for the first time, and even those with more experience, seek appropriate and adequate property development advice. Taking into account the amount of finance required, duration of the project and any associated fees.
Bridging Loans for Property Developers
Let’s say a prime piece of land has become available for sale at a desirable location, and finance is required fairly quickly to secure the deal before someone else makes an offer. Perhaps a sale has taken longer than expected to complete and a cash injection is needed in order to move on to the next project.
Whilst not solely a form of property development finance, a bridging loan can be a useful financial instrument when seeking property development finance until a long term solution is in place.
More often than not bridging loans have a faster approval rate and therefore can free up working capital at crucial times when other finance is not available, subject to creditworthiness, affordability, the amount required and length of time bridging finance will be required.
How Newable Commercial Finance Can help
At Newable Commercial Finance, we know that time is money, and that many property developers may not have the time to fully research and sift through the vast amount of lenders there are in order to find the best deal.
Having established long-lasting relationships with over forty different lenders across the UK. Our team of fully trained experienced staff have a wealth knowledge in assisting businesses to find the most suitable financial products in order to grow.
To find out more about the services we provide, and how we can help you to take your business to the next level call: 0330 333 4596.