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Address
66 Wynches Farm Drive,
St Albans,
Hertfordshire,
AL4 0XH. |
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Property Development Finance
Dial Financial Services Ltd can arrange development finance
for both residential and commercial property developments
throughout the UK. It is possible to arrange funding for
both experienced developers and also novice developers.
Adverse accounts and credit problems can also be catered
for.
Development finance can be tailored to any number of different
formats, depending on the client and the clients needs.
The high street banks each have different lending policies
but will generally lend up to 70% of land acquisition
costs and 70% of development costs. They may also allow
a roll up of interest over the period of the development.
Due to the relatively lower bank risk this type of traditional
funding is the least expensive in terms of rates. Typically
high street bank lending will be at bank base rate + a
margin of between 1.5% - 2%, depending on experience and
the development proposal.
Merchant and specialist banks also have different lending
policies but will generally lend up to 70% of site acquisition
costs and 100% of development costs. Some will lend as
a percentage of the gross development value, which in
some cases can result in a much higher percentage lend
of site cost as well as all the development costs. As
this type of lending is higher risk it is more expensive
than traditional bank funding. Typically the margin on
bank base rate could be 3% - 4% with a percentage of gdv
(gross development value) value as an exit fee.
Dial Financial Services can also arrange 100% funding
for developers. A high street bank provides the senior
debt of 70% and a mezzanine funder provides the additional
30%. Further information on this type of funding is available
in the mezzanine-funding page of this site. |
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