Development finance is designed for property developers and investors. Both groups frequently rely on development finance and accessing crucial capital when building new properties in the UK.
For example, development finance can be used to fund ground-up developments and conversions alongside refurbishment projects. Moreover, it can be utilised to fund various stages of the process; such as the initial land purchase and construction costs.
In some cases where a property is to be self-built, specifically designed self-build finance may be required, with funds released in stages depending on the progression of the project and the borrower’s repayment schedule.
Development finance, nevertheless, is available for both residential and commercial property purchases. It is not, however, typically used for smaller projects such as single property refurbishments where a bridging loan may be more suitable.
Development finance, in short, is a form of short-term funding for developers. It is available through various options, such as loans, equity investment and lines of credit. At Magni Finance, we can help clients access the best development finance loans in the UK through our trusted network of private and high-street lenders.