Aberdeen Industrial Finance specialise in providing property development finance for both residential and commercial property developments

As well as providing Buy to Let and Commercial mortgages, we also specialise in providing property development finance for both residential and commercial property developments across the spectrum from multi million commercial property developments to residential property developments costing tens of thousands of pounds.

Property development finance rates differ dependent on the applicant’s experience, the industry sector and the nature of the proposal but a good benchmark to consider would be Bank Base Rate + 1.0% to 4.5%.
Property development finance is usually arranged on an interest only basis and the term of the loan can be one year plus depending on the size and nature of the underlying project.

Loan to project costs will be influenced by projected gross property development values but funding would typically be in the region of 65% to 70% of the Gross Development Value..

It is also possible to organise a loan to finance up to 100% of the property development costs where the borrower already owns the land on an unencumbered basis.

Where the property developer is able to improve the planning consent post acquisition, we are able to negotiate increased levels of funding which recognise higher land and gross development values.

Aberdeen Industrial Finance Ltd negotiates finance requirements with a full panel of property development lenders and other financial institutions to provide the right 'match' to the project.

We offer a full range of development finance options at every stage of the development process.

Equity
Mezzanine
Senior (bank) debt

Typically, the maximum senior debt finance achievable will be equal to 75% of total costs. However it is important to consider our ability to re-gear finance against planning gain/enhanced value at the project end, therefore vastly increasing finance potential. In short, we can finance on the increased value of the property post development.

For experienced property developers with a strong track record 100% of build out costs can be obtained.
We have access to providers of mezzanine finance and equity participations that can reduce the amount of development capital that is required to inject into individual property development schemes. Whilst terms will often differ significantly from senior debt finance, this does provide a developer with an opportunity to enhance returns from individual development projects.

Where appropriate long-term property finance can be arranged to provide 'exit' from initial, short-term development finance. Aberdeen Industrial Finance Ltd are also specialists in both Buy to Let and Commercial mortgage markets.

Our skills base is spread across both residential and commercial property development finance. For commercial development schemes we can arrange finance with pre-lets, on pre-sales, or development for owner occupation.
Crucially, we provide full assistance with initial residential and commercial property development appraisals, to ensure projects are viable to development lenders.

Typically, commercial and residential property development mortgages arranged by us for clients are from £150,000 to £25m.

Land and Property Loans
Land and Property (Houses, Factories and Warehousing sites, office buildings) are all good forms of collateral for long-term loans. When arranging a property mortgage, the bank or lender will want to establish

The location of the property.
The structural condition.
The 'Forced Sale Value'.
The amount of insurance carried on the property.

Prior charges and securities registered on the property must all be cleared in order to get a `First Charge'. Please note that there are some licensing requirements in terms of any insurances which are sold as part of the property mortgage which you cannot negotiate if you are not properly licensed. Please check with your Loan Officer for help and advice in this lending area.

Interim or Bridging Finance
This is simply a high-interest short-term finance facility specially designed to tide a purchaser over until they can get permanent long-term financing.

It is best suited to the company that has a good, competitive position and has met an opportunity to make a profitable business deal, provided it can produce a sizeable amount of money quickly. It may also be used where interest rates are high on long-term financing, but the company expects they will come down by the time the short-term loan matures.

This will give the company the option of signing a long-term commitment at the best possible rates. This type of funding is also helpful when making a bulk purchase of an item, which can be sold again quickly, at a sizeable profit. The short-term bridging monies allow you to make the purchase then sell the goods and pay interest on the capital for the short period it was first being used. Interim financing usually needs to be arranged well in advance of its use, to ensure funds will be available precisely when they are required.

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	As well as providing Buy to Let and Commercial mortgages, we also specialise in providing property development finance for both residential and commercial property developments across the spectrum from multi million commercial property developments to residential property developments costing tens of thousands of pounds. Property development finance rates differ dependent on the applicant’s experience, the industry sector and the nature of the proposal but a good benchmark to consider would be Bank Base Rate + 1.0% to 4.5%. Property development finance is usually arranged on an interest only basis and the term of the loan can be one year plus depending on the size and nature of the underlying project. Loan to project costs will be influenced by projected gross property development values but funding would typically be in the region of 65% to 70% of the Gross Development Value.. It is also possible to organise a loan to finance up to 100% of the property development costs where the borrower already owns the land on an unencumbered basis. Where the property developer is able to improve the planning consent post acquisition, we are able to negotiate increased levels of funding which recognise higher land and gross development values. Aberdeen Industrial Finance Ltd negotiates finance requirements with a full panel of property development lenders and other financial institutions to provide the right 'match' to the project. We offer a full range of development finance options at every stage of the development process. Equity Mezzanine Senior (bank) debt Typically, the maximum senior debt finance achievable will be equal to 75% of total costs. However it is important to consider our ability to re-gear finance against planning gain/enhanced value at the project end, therefore vastly increasing finance potential. In short, we can finance on the increased value of the property post development. For experienced property developers with a strong track record 100% of build out costs can be obtained. We have access to providers of mezzanine finance and equity participations that can reduce the amount of development capital that is required to inject into individual property development schemes. Whilst terms will often differ significantly from senior debt finance, this does provide a developer with an opportunity to enhance returns from individual development projects. Where appropriate long-term property finance can be arranged to provide 'exit' from initial, short-term development finance. Aberdeen Industrial Finance Ltd are also specialists in both Buy to Let and Commercial mortgage markets. Our skills base is spread across both residential and commercial property development finance. For commercial development schemes we can arrange finance with pre-lets, on pre-sales, or development for owner occupation. Crucially, we provide full assistance with initial residential and commercial property development appraisals, to ensure projects are viable to development lenders. Typically, commercial and residential property development mortgages arranged by us for clients are from £150,000 to £25m. Land and Property Loans Land and Property (Houses, Factories and Warehousing sites, office buildings) are all good forms of collateral for long-term loans. When arranging a property mortgage, the bank or lender will want to establish The location of the property. The structural condition. The 'Forced Sale Value'. The amount of insurance carried on the property. Prior charges and securities registered on the property must all be cleared in order to get a `First Charge'. Please note that there are some licensing requirements in terms of any insurances which are sold as part of the property mortgage which you cannot negotiate if you are not properly licensed. Please check with your Loan Officer for help and advice in this lending area. Interim or Bridging Finance This is simply a high-interest short-term finance facility specially designed to tide a purchaser over until they can get permanent long-term financing. It is best suited to the company that has a good, competitive position and has met an opportunity to make a profitable business deal, provided it can produce a sizeable amount of money quickly. It may also be used where interest rates are high on long-term financing, but the company expects they will come down by the time the short-term loan matures. This will give the company the option of signing a long-term commitment at the best possible rates. This type of funding is also helpful when making a bulk purchase of an item, which can be sold again quickly, at a sizeable profit. The short-term bridging monies allow you to make the purchase then sell the goods and pay interest on the capital for the short period it was first being used. Interim financing usually needs to be arranged well in advance of its use, to ensure funds will be available precisely when they are required.
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