Development Finance
Momentum provides development finance for ground up developments or heavy refurbishment, for residential, commercial and industrial use. With facility terms from 3 - 24 months.
Development Finance
Finance provided from
£100K - £1m
Repayment
Term of loans between 3 and 24 months.
Who can we help?
Ltd co, Sole trader or HNW with experience in development.
Pricing
Set up fee 2% - 4%
Monthly interest of 1% to 1.75% of the gross loan (QS site visits and reporting costs to be added)
Exit fee of 1%
Interest can be serviced or rolled up and deducted from draw downs
End of development re-finance
No penalties for early repayment
Security
Land with planning permission (no more than six units to be built) which can be residential, commercial, industrial or mixed use
Property with planning permission for heavy refurbishment, extension or further development on title
Security can be on balance sheet i.e. owned by the business when lending to or owned personally by a Director / Shareholder of the business
Joint Venture between landowners and building contractors will be considered on a case by case basis
Security Loan to Value – on Lending Value (LTV)
For ground up development 60% of purchase price and 60% of ongoing build cost drawn down on a milestone basis
0% of purchase price and 100% of ongoing build cost drawn down on a milestone basis
Heavy refurbishment, monthly drawn downs against build cost and schedule in arrears
QS site visits required for all development finance products. Costs for site visits and reporting to be deducted from draw downs
Milestone Drawdowns
Foundations up to DPC
Up to Wall plate
Roof On, Windows and Doors fitted (Water tight)
First Fix
Second Fix (including bathroom and kitchens fitted)
Decoration and landscaping
Experience in development or refurbishment is required in all development finance cases / facilities.