Whether you’re a first-time property developer, a professional landlord or a seasoned property investor, there are a number of different ways to secure the finance you need to complete your first or next property development project.
From commercial mortgages and auction finance, through to first time property development finance, it’s important to determine the right property development finance option for your needs.
If you’re struggling to know where to start when it comes to securing finance for your project, we’ve taken a look at some of the options available to you.
First time property development finance
If you’re a first-time property developer looking to purchase your first property, one of the best options for you could be a flexible development mortgage. There are flexible development mortgages specifically for first time private developers, especially for those looking to buy a property with the view to refurbish it to rent it out.
Sources of property development finance
Properties at auction tend to be a lot more affordable than those listed on the market, making them a great way to purchase your first or second property. When you purchase a property at auction, you will usually be expected to pay for it within a month of securing the sale. However, some lenders will offer auction finance known as a short-term bridging loan. This means that you can access funds quickly when needed and refinance the house once the work is completed.
If you are interested in developing a private or commercial property, commercial mortgage options will give you the funds to purchase a commercial property such as a shop, warehouse or office.
Of course, it’s not just the price of the property you will need to take into account when securing finance to put towards the purchase of a property development. You should also consider the amount of refurbishment work that is required and whether or not it is a ground-up development.
Securing property development finance
At Stewart Hindley, we understand that the right investment is crucial when it comes to acquiring the funds you need for your new property venture. Get in touch today to find out how we can help you to obtain the best option for your financial circumstances.