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Top 5 tips to secure development finance

The UK property market has been surprisingly strong in light of Brexit concerns. We have actually seen a sustained interest in property development. That was certainly the case at MIPIM where we were excited to speak to a number of developers who are looking to expand and develop quickly with the help of funding.

In 2018 the property finance team at Cowgills secured debt funding for development and investment transactions in excess of £150 million – through securing finance  We also helped to develop in excess of 350 residential homes in the region.

So, what funding methods are available?

From senior debt to stretched senior, mezzanine and equity providers there are more lenders in the market than ever before and with appetite to fund schemes in the North West.

No two property developments are ever the same. There will be different timescales, different challenges and different financial requirements for each and identifying the best lender suited to your scheme and obtaining support can often be a challenge.

Here are our top 5 tips to securing development finance

  1. Be frank in your dealings and present a ‘warts and all’ picture based on facts. It is far easier to mitigate issues at the outset rather than back tracking at a later date.
  2. Demonstrate your experience and that of your team through previous and current projects.
  3. Support your case through appraisal based evidence and comparable sales and cost information with back up from your professional team.
  4. Accept that demonstrable ‘skin in the game’ will be essential.
  5. Be realistic in your expectations on pricing relative to the risk profile.

In summary provide your information in a well-presented application with the correct supporting information, pitched at the right level with a carefully targeted lender.

 

Disclaimer

The information was correct at time of publishing but may now be out of date.

Business Funding
Posted by David Rainford
26th March, 2019
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