Struggling To Raise Development Finance?
Check out the benefits of Collective Investment Schemes, a viable alternative source of much needed capital.
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Development Finance
Merchant Bank 70/30
70% of total costs
Projects in London, SE, Home Counties
GDV £1m - £5m
Interest - 7% per annum
Family housing
Apartments
Arrangment Fee - Bank 1% + Monyy 1%
Exit fee - 1% GDV
Gross Profit Margin must show - 20% on total cost (before bank interest)
Higher gearing, lower developer equity
Projects in London, SE, Home Counties
GDV £1m - £5m
Interest - 7% per annum
Family housing
Apartments
Arrangment Fee - Bank 1% + Monyy 1%
Exit fee - 1% GDV
Gross Profit Margin must show - 20% on total cost (before bank interest)
Higher gearing, lower developer equity
Call us now : 01 94 98 19 18
Merchant Banks will often provide higher LTC than High Street banks; but this higher geared finance comes at a higher cost, both in interest rates and fees charged. Such banks currently only provide lending within London, SE and Home Counties where markets are often more resilient than elsewhere in the UK. As market conditions improve, they may choose to finance other selected developments in other major cities and towns, but not at present.
Merchant Banks also set a higher bar of experience. They cherry pick experienced developers who can demonstrate a strong record of previous success.