Development Finance

WE SPECIALISE IN RAISING FINANCE ON RESIDENTIAL AND COMMERCIAL PROPERTY TRANSACTIONS IN THE UK

Securing the right property development finance is crucial for the success of any development project.

At Lampi Capital, our property development finance broker service is designed to meet your diverse needs, offering a wide range of finance options to suit your specific requirements:

We provide competitive developmental finance, ranging from £50,000 to a substantial £50 million.
Our finance options cover various regions in the UK, including England, Scotland, Wales, and Northern Ireland. Additionally, we can arrange financing for projects in Ireland.
For international projects, we offer development funding starting from £5 million.
Up to 100% of your development finance cost can be covered by our loans.
We offer development exit funding for projects nearing completion without any exit or early redemption fees.
Refinancing solutions are available for projects facing delays or setbacks.
First-time developers can benefit from suitable finance options tailored to their needs.
Our finance solutions extend to properties that are currently uninhabitable.
Conversion finance, including permitted developments and care home conversions, is part of our offerings.
Joint venture finance options are available.
We provide 2nd charge options to meet your financing requirements.
For substantial home renovations, we offer finance solutions.
Loan terms can extend up to 36 months for flexibility.
Experienced developers can access hunter-style revolving credit finance facilities.
We are open to considering complex cases and tailoring solutions accordingly.
Our expertise extends to arranging finance for various ownership structures, including multiple SPVs, Offshore SPVs, UK-based trust structures, and overseas trust structures.
We can accommodate finance requests based on Shariah principles.
Our finance solutions cater to new build, conversion, or refurbishment developments, including mixed-use and student accommodation.
Sourcing finance for diverse projects such as land, commercial to residential conversions, care homes, barn conversions, places of worship, petrol stations, fisheries, air rights (with acceptable security), and charities is within our capabilities.

At Lampi Capital, we are committed to providing comprehensive and tailored finance options to support your property development projects efficiently and effectively.

Whether you are a seasoned property developer or just starting in the field, Lampi Capital provides a diverse range of options to fund your property projects. Finding the right property development finance is crucial to keep your project on track and achieve a successful outcome.

At Lampi Capital, we cater to developers of all levels, from private individuals undertaking property renovations to large commercial developers engaged in multiple property developments for sale or rental purposes. Our extensive network of top lenders allows us to offer a professional and comprehensive property development broker service.

No matter the scale or complexity of your project, Lampi Capital is here to assist you in finding the optimal finance solutions to meet your specific needs and ensure the success of your property development venture.

We offer our property developer clients:

Development finance from £50,000
Access to market leading rates
Flexible finance terms up to 24 months on simple & complex developments
Finance for new build, conversion or refurbishment developments including mixed use and student accommodation
Funding solutions from high street and private banks, specialist lenders, family offices, wealth managers and private investor fund groups

REASONS TO USE A PROPERTY DEVELOPMENT FINANCE BROKER

When seeking finance for a property development, opting to use a property development finance broker offers several compelling advantages over attempting to secure funding independently:

Speed: Brokers possess established relationships with lenders, enabling them to identify the most suitable funding options for your project. They are also well-versed in common roadblocks that can hinder an application, ensuring a faster and more efficient funding process when you work with a broker.
Access to a broader selection of lenders: Many development finance lenders operate exclusively through intermediaries and are not directly accessible to the public. Engaging the services of a professional development finance broker grants you access to a wider array of potential lenders, increasing your chances of finding the most suitable match for your needs.
Securing the best deals: An experienced broker possesses up-to-date knowledge on lenders currently offering the most favourable rates. They can guide you on how to position yourself to obtain these rates. Additionally, a broker will assess the overall value of a loan, including potential hidden costs and fees that may not be immediately apparent to those without professional expertise.
Reduced burden: Property development projects involve managing a multitude of details and processes. Entrusting the task of finding funding to a development finance broker alleviates this burden, allowing you to concentrate your efforts on other essential aspects of your development endeavour.

Understanding Development Finance

Development finance is a critical funding solution for a wide range of projects, encompassing property development, construction endeavours, and infrastructure ventures, whether in the residential or commercial sector.

This specialized form of financing provides property investors and developers with essential capital to successfully execute their property projects.

What is Development Finance?

Development finance entails short-term secured loans with higher interest rates, often coupled with a drawdown facility throughout the loan term. Its primary purpose is to supply the necessary funds for the acquisition of development sites, land, or properties. Moreover, it extends its support to cover 100% of the development costs from the initial land purchase to the project's completion.

As development projects present unique requirements and complexities, this form of financing offers tailored solutions that cater to the specific funding needs of both developers and investors.

What is a Development Finance Broker?

To navigate the intricacies of development finance and secure the most suitable funding options, individuals and businesses often seek the expertise of a development finance broker. These professionals specialize in connecting developers with lenders, serving as intermediaries in the process.

Leveraging their extensive industry connections, development finance brokers identify suitable lenders and negotiate favorable terms on behalf of their clients, facilitating a smoother and more efficient financing journey.

What can a Development Finance broker do for you?

At Lampi Capital, we specialize in custom financing solutions for a variety of development projects. Here are several instances of the actions we take to support borrowers:

Consultation & Evaluation – Arrange an in-depth conversation to evaluate project particulars, encompassing the project's scope, timeline, planning permissions, and financial necessities. We can gauge your eligibility and pinpoint appropriate development finance alternatives.

Lender Choice – We will identify competitive lenders who provide favorable rates and conditions for development finance. This guarantees that the selection options align with the requirements of your property project.

Application Preparation – Development finance often entails a more extensive array of documents compared to traditional mortgages or bridge loans. We can aid in assembling the required documentation, financial statements, and project blueprints to construct a robust loan application. A broker can assist in accentuating project strengths to heighten the likelihood of approval.

Lender Negotiation – Directly approaching lenders can prove to be intricate, especially when dealing with specialized forms of financing. We can serve as your representative during negotiations involving aspects such as interest rates, drawdown facility, and repayment choices.

Approval & Funding – Streamline the loan approval process by addressing supplementary lender prerequisites. Once the conditions are fulfilled, lenders disburse funds for the development endeavor.

Continual Support – Offer uninterrupted support and expert guidance all through the development journey, which includes options for refinancing and project management.

In essence, enlisting the aid of a broker will simplify the financing procedure, ensuring lucidity and efficiency while maximizing the prospects of obtaining optimal funding for your development project.

Are the Benefits of a Development Finance Broker Worth the Expense?

A development finance broker proves to be an indispensable asset when it comes to securing funding for your property development venture. Through their services, you gain access to the most favorable rates offered by UK lenders.

At Lampi Capital, our fee structure operates on the basis of a small percentage of the loan amount. Typically, our fees range up to 2% of the total loan (made up of 1% broker fee and 1% directly from the lender) subject to a minimum of £1,000.

Engaging a development finance broker can be a time-saving measure and ensure seamless progress for substantial projects. They swiftly locate and negotiate with the appropriate lender, taking care of paperwork and addressing financial organization matters on your behalf. Their specialized knowledge streamlines the process and optimizes the likelihood of achieving your goals.

Find a broker for your development undertaking to save time and guarantee a hassle-free journey. Allow them to manage paperwork and negotiations while you concentrate on attaining success for your project.

Can I Approach Development Finance Lenders Directly?

While it is feasible to approach lenders directly, it is not recommended. Even though development finance can potentially be obtained from conventional banks, it falls under the category of high-risk and specialized financing – something that is typically better acquired through expert lenders.

Specialist lenders often engage exclusively with brokers as intermediaries.

When confronted with a complex property development project, you might prefer to avoid the added concerns of dealing with lenders directly.

Furthermore, conventional lenders view development projects as ventures with elevated risk levels due to market fluctuations, construction complexities, and evolving regulations. This cautious outlook frequently leads to lenders hesitating to extend the necessary financing. Without presenting your application in the best possible light and without the counsel and direction of a development finance broker, you might jeopardize your application's chances.

By collaborating with development finance brokers, you could potentially secure flexible terms and negotiate a favorable rate. Furthermore, developers can explore alternative avenues and make well-informed decisions to guarantee the triumph of their projects.

Can I get 100% Development Finance with the Help of a Broker?

A development finance broker can assist you in securing financing covering 100% of your development expenses. However, achieving this can pose a challenge contingent upon the intricacy of your property project.

Having a skilled broker by your side proves beneficial in connecting you with lenders open to providing this form of financing for eligible development ventures. Without a broker, attaining this objective can prove highly challenging.

Remember that servicing a loan at 100% coverage will entail higher costs, and lenders will still evaluate multiple factors including the project's viability and your financial situation. You might require supplementary assets alongside the security – namely, the property or development site – to meet the criteria for this kind of loan.

It is advisable to consult with a broker to delve into your unique circumstances and explore the array of options available. Through our network of specialist lenders, at Lampi Capital can guide you in obtaining loans that encompass up to 100% of your development expenses.

FAQs

Can a Development Finance Broker help me with Bad Credit?

A development finance broker can point you to lenders that specialise in working with borrowers with bad credit. Despite the challenges of securing development finance with a poor credit history, a broker has market knowledge and connections with different lenders, increasing your chances of finding a suitable solution. Consulting with a broker or financial advisor is advisable for personalised advice based on your specific situation.

How long does it take to secure development finance?

The speed at which you can obtain development finance will vary, but in some cases, short-term finance can be obtained in as few as seven working days.

What are the interest rates for development finance?

The interest rates for development finance usually vary between 4.5% and 9%, and they are determined based on factors such as the project's level of risk and the borrower's experience.

Lampi Capital Ltd is unregulated and does not have FCA permissions. Some types of finance such as bridging, development, commercial and buy to let mortgages may not be regulated by the Financial Conduct Authority.
Fees may be payable for advice and/or arrangement of your loan.

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up the repayments on it or any other loan secured against it. Think carefully before securing other debts against your home.

Please seek tax advice, prior to taking out any unsecured facilities. If required, we would be more than happy to make an introduction to one of our tax specialist partners.