Property Development Finance

What is Commercial Property Finance for property development?

Property development finance is designed to assist commercial property developers and investors to fund projects when finance is required.

For those experienced in property development, you will understand how necessary it is for financing to be flexible. Whether that be a ‘ground up’ development, a change in commercial use or a renovation, having the finance available allows the process to be more efficient, propelling you towards your property development goals.

Our property division provides finance for an array of property development across the UK.

Ways of funding commercial property development

Bridging Loans: Bridging loans facilitate the purchase of a property or land before the expected funds are released. If there is a period in which the sale of another property has not come through yet, a bridging loan can be used. It can also be used for refurbishment and renovation.

Mezzanine Finance: A funding option in which debt and equity are combined. This can offer developers and investors the opportunity to secure funding if finance is not available to them.

Stretch senior finance: A great alternative to mezzanine finance for established developers who have multiple projects ongoing with limited access to funds. It offers a high loan-to-value (LTV) offer compared with traditional senior debt financing.

Joint debt and equity: Equity investment allows developers to put less capital in at the outset. By leveraging senior debt and equity, developers are often able to undertake more than one site simultaneously which provides an opportunity to grow faster and more sustainably. 

How property development finance works

Through having access to multiple banks, lenders and sources of equity, we are able to offer a quality range of solutions tailored to your development. Often, this is a quick turnaround and provides you with the opportunity to fully understand the costs of your project. As standard, once you accept, you will receive the full amount and make monthly payments with interest for the time stated.

Advantages of securing property development finance

Flexibility: Gives developers and investors access to flexible financing products that address their business needs.

Quick access: Enables development projects to be undertaken with greater confidence that the deadlines will be met.

Larger projects within reach: Smaller companies are able access larger projects that may not have been able to fund the project otherwise.

Is property development finance right for your business

This specialist finance normally tailors towards commercial property development, including office space, shopping centres and other venues.

Financial problems can occur for developers, especially if they aren’t able to mortgage them. Due to this, property development finance significantly increases flexibility for these projects, and can have a major positive impact on speed and development.

Applying for property development finance

MAF Finance Group can compare finance options from a panel of lenders to identify the one that suits your business needs the most.

If you would like to get a quote or need further information, simply fill out the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be in contact. Otherwise, email us at [email protected].