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Property Development

Property Finance

Property Development & Refurb

White Rose Finance has been funding development projects for over fifteen years. Structured finance available up to 90% of the overall project costs (site and development costs)

What are the Benefits of

Property Development Finance?

  • Borrow a higher percentage of the project cost

    The ability to borrow a higher percentage of the project cost is often a key benefit for the client with restricted funds. The higher the client’s contribution and experience generally the lower the cost of funds.

  • Roll-up the interest costs

    The ability to roll-up the interest costs over the loan term removes from the client the problem of having to find the costs for the finance until the sale or refinance of the property to cover them.

  • Access to more Lenders

    Most developers only have knowledge of a few funders of development finance generally restricted to their own bank and one or two others. We give you access to a broad range of lending institutions for your developments.

  • Build More Properties

    For the company that specializes in construction of property, borrowing funds allows you to build more properties at the same time than simply a leveraging of your own funds would allow.

What is Property Development Finance?

A property development loan is a commercial short-term loan generally offered in two stages – the site loan (purchase or refinance) and the construction loan. Both elements are secured on the development site in question and the building project as it develops but can also be secured wholly or partially on other residential or commercial property assets owned by the applicant (additional security).

The development loan provides the applicant with the means to complete on the purchase of the site if necessary or to re-finance the site if encumbered to another lender or the site can be used as client contribution if valued sufficiently so the lender just funds the build costs.

Once the development or refurbishment program commences, funds are made available to be drawn down at agreed stages to assist with the development, refurbishment or conversion costs associated with the project.

Property development mortgages can only be put into place on an asset that already has planning permission for the construction phase – if planning is not in place, then a bridging loan can be offered to buy the land but at a low LTV.

More About Bridging Finance

What funding structures are available?

  • Senior Debt

    A standard development facility provided by a lender and secured on a first ranking legal charge over the development site.

  • Mezzanine Debt

    Generally expensive top up debt ranking on a 2nd ranking legal charge behind the senior debt and provided by a small number of specialist mezzanine lenders.

  • Stretched Senior Debt

    A blend of senior debt and mezzanine debt but provided by the same lender, this allows the lender to make an advance to a higher level and charge a higher rate or an increased exit fee paid on redemption of the loan.

  • 100% Funding

    Technically a lender provides all the funding necessary to acquire the development site and build out to completion, these advances are offered when the borrower can provide acceptable additional collateral security to the lender over and above the development site itself.

  • Joint Venture (JV) lending

    A small number of lenders will offer to partner with an experienced developer on attractive high demand residential schemes providing 100% of the entire project costs. There are various ways that JV schemes can be structured including debt, equity share, inflated exit fees and a combination of all. However, structured the lender will generally be looking for a share of the profits in the scheme up to 50%

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Monday-Thursday: 9am – 5pm

Friday: 9am – 4pm

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Data Protection Ststement
How to Complain

White Rose Finance Group Ltd (Registered 05425872) is directly authorised and regulated by the Financial Conduct Authority (FCA) under firm reference number 630772 for regulated mortgage and consumer credit activities. However, not all business undertaken by White Rose Finance is regulated by the FCA. Certain types of finance that we offer, are non-regulated activities.

Please make borrowing decisions carefully and note that property or other assets offered as security may be at risk if you cannot keep up with repayments.

Please note, when you call our office, we record calls for training and monitoring purposes. This will be for all calls to business direct dial numbers as well as our main numbers. We will not share this data without your consent, unless required to by law.

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