What is Development Finance

Development Finance

The world of property development can be complex and confusing, a little like unrolling a ball of tangled string. There are so many variables and things to consider that it can be a challenge for anyone to understand all of the complexities involved.

Whether you are in the planning process for large-scale property development or are simply researching your renovation options for a buy to let property, AW Capital can assist and guide you through this extensive process.

What Is Property Development Finance?

Property development finance is an umbrella term used to describe how a commercial, residential or mixed-use development can be financed. Generally speaking, property development finance relates to medium to large-scale projects or situations where developments are being built from the ground up, as opposed to a single property family home.

Why Has Private Property Development Finance Increased In Popularity Recently?

Many private investors relish the thought of benefitting from the potential profits of the private residential property market. Investing in property has long been viewed as a less risky option than stocks and shares. However, not everyone has sufficient liquid resources to invest freely. Private investors can apply for property development finance, giving them the resources to turn their dreams into reality. If this is the situation you find yourself in, then book an appointment with one of the advisors at AW Capital.

This is because different lenders will have different eligibility criteria. Some lenders will be focused on your business plan, projections, and potential profit margins, while others will be more concerned with your experience. At AW Capital, we can match you with the lender most suited to your personal circumstances.

Understanding The Options Available To You

Investing in property, and applying for property development finance, is a serious commitment that should not be undertaken without due diligence. It is also critical that the borrower understands the various types of development finance on the market and chooses the right product to meet their requirements.

Bridging Loan

Perhaps you have found the perfect real estate project that you feel you can develop and sell at a significant profit within a matter of months. In this situation, a bridging loan might be the better alternative.

When it comes to property development, it is essential to obtain legal and financial advice to ensure that you are operating within the law, as there will inevitably be complications. AW Capital has many years of experience within the property development finance arena, and we will be more than happy to advise and guide you through the process.

Contact us today to start the process of building your property portfolio.

Development Finance