What is Development Finance?

  …a short-term funding option, usually for between 6-24 months. It is designed specifically to assist with the purchase costs and build costs associated with a residential or commercial development project.
This can be a new build, conversion or refurbishment covering a single unit through to multiple units built across a number of phases.
A development loan comes in two parts:

1. To purchase the site
The first element of the funding will often be used to assist with the purchase of the development site. This could be land where a number of new properties will be built or an existing property that will undergo a refurbishment.

2. To fund the building costs
The second stage of the loan is used to pay for the costs of the build works associated with the project. This is usually drawn in stages, as opposed to being given in one amount at the outset. This often happens once a month as works are completed on the project.