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Residential Development Funding

CD Property Finance arranges residential development funding for large housebuilders as well as for smaller developers providing bespoke housing to very discerning buyers. Refurbishment and conversion finance is also available.

Development finance for new build houses
 
Development finance for new build apartments
 
Development finance for refurbishment and conversion projects

Stretched Senior Debt

Although 85% to 90% finance is more widely available, in certain circumstances up to 100% residential development finance can be provided for the construction of houses and apartments across England and Wales. This is provided as senior debt or as stretched senior debt.  Senior debt is bank finance.  Stretched senior debt is bank finance plus mezzanine finance which replaces some of the developer’s equity.  Stretched senior debt is provided by a single lender.

Mezzanine Funding

If stretched senior debt is not available mezzanine finance is a useful tool for a property developer or investor that has some equity (cash) but not enough to satisfy a bank lender. Mezzanine funding is used to top up the borrower's equity. The following is an example of how mezzanine finance can be used where a loan of £1,000,000 is required but where the borrower only has £150,000 of readily available cash to put towards the project:

£650,000 - bank finance or senior debt - secured by a first mortgage

£200,000 - mezzanine finance - secured by a second mortgage

£150,000 - borrower's own equity

£1,000,000 - Total Project Cost

Please contact us on 01428 684452 or email  and see how we can help your residential development finance requirements.

CASE STUDIES

   
  East Grinstead - £540,000 for a single large new build house on a private estate. 100% of development costs.
   
 

Haywards Heath - £510,000 for a single large new build house within easy reach of the town centre.

   
 

Alton - £1,300,000 for 5 new build family houses, representing over 80% of project costs.

   
 

Bristol - £480,000 for 3 houses – senior debt

   
  Hampstead - £675,000 for a single house in a prime position. Stretched senior debt
   
 

Islington - £345,000 for an unusual single 2 bed unit in a quiet road in this prime area.Stretched senior debt

   
 

 

 

    

CD Property Finance is a member of the
National Association of Commercial Finance Brokers

and the Association of Bridging Professionals

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© 2014 CD Property Finance

residential development funding - development finance - property development finance- commercial property finance- residential property finance

bridging loans- mezzanine finance - commercial mortgages - 100% development finance - new build finance - short-term finance