Property Development Finance - Market Update

Market Update - Spring 2013 The government's Funding for Lending Scheme now has over 30 participant lenders  This means that property investors can be cautiously optimistic about lower priced funding as it is our recent experience that for high quality investment deals some of these lenders are willing to apply the interest margin discounts which the scheme intended. Unfortunately, residential developers are unlikely to be looked upon favourably as all lenders perceive extra risk in this type of lending. However, there is some good news for developers. In recent months CD Property Finance has located no fewer than six good lenders that will provide "stretched senior debt". Essentially this provides developers with bank type development finance plus mezzanine, or top up, finance from a single lender.  All six of these lenders are active in the market and want deals from residential developers in the range of £500,000 to £25,000,000.  With these lenders willing to consider loans of up to 65% of GDV - in some cases 70% -  CD Property Finance is confident that this is a positive move and will increase confidence in the sector in 2013. If you would like to discuss your property development lending requirements then please email us or call Chris on 01428 684452

Chris Dowdeswell e: chris@cdpropertyfinance.com t: 01428 684452/ 07788 591873