The following are the standard documents required for Development Finance:

• KYC: ID, Address proof, Personal & Professional History, and credit report for all the Borrower, Director, Partners & Major Shareholders
• SPV: Structure, Directors, Shareholders, UBO-KYC, and registered address
• Money Laundering Documents: Assets & Liability Statements, Income & Expenditures Statements, Equity (deposit) proof
• Income proof (may be required): Last 3-year accounts/tax return, 3 Month Bank Statements (Personal & Business)
• Collateral: Full descriptions, brochure, valuation report (if available), tenancy schedule (if applicable)
• Development Related:  Project History, Project CGI Drawings/Elevations, Planning Permission, Development Finance & GDV Appraisal, Professional Team detail (Project Manager, Quantity Surveyor, Architect, Contractor etc), Build Costs, and Exit Strategy

1. Initial Assessments: We need a rough idea of costs, end value, profit margin, how long the project will take, and viability.
2. Quote: Assuming the scheme is viable, you will then receive a quote in writing detailing the interest rate, fees, and headline borrowing terms, along with a list of documents needed to submit a full application.
3. Site Visit: This helps to understand the project and build a relationship between you and your dedicated lending manager. We will work with you to arrange the site visit and will often attend to help you to answer any questions.
4. Credit Committee Decision: After the site visit has been completed, your lending manager will usually take your application to the credit committee. These are the underwriters who sign off the application as acceptable to the lender. Once approved the formal offer, subject to valuation, and legal work.
5. Valuation: A surveyor is instructed to compile a valuation report on the project. It will be comprehensive, covering the current value, anticipated build costs, anticipated gross development value, and expected demand.
6. Legal: Your solicitor is instructed to carry out the legal work and satisfy all conditions. They will run through the terms of the agreement and ensure you fully understand the loan. Once satisfied, you will sign the formal offer and return it to the lender. Your solicitor must be experienced in dealing with development finance as inexperience here can slow the process down significantly.
7. Funds Release: Once all of this is done, the funds can be released, and the loan completed. Note that only the first stage of funds is released to your solicitor.

The following costs should be considered at the time of availing the Development Finance:

• Arrangement Fee: The arrangement fee or the facility fee, is usually charged by the lender as a set-up fee for the loan
• Exit Fee: The fee is payable to the lender when repaying the loan
• Broker Fees: These are the fees payable to the Broker for finding the best lenders and managing the application to completion
• Valuation Fees: This is the fee that has to be paid to the valuer, who shall be instructed by the lender to furnish a report on the collateral/project
• Legal Fee: Usually, the borrower would have to pay the legal fee for their own solicitors as well as the lender’s solicitors fee
• Professional Fees: Other fees include but are not limited to the costs of  ‘Architects, Quantity Surveyors, Project Managers & Consultants’, etc

How Much Money Can I Borrow?

We offer development finance from £50,000, with no maximum loan size.

What Interest Rate Will I Be Charged?

Each loan is different; however, we can offer from 4.0% per annum. Please review Esteema Special Pricing for details.

How Soon Can I Have the Money?

You can have the funds available for drawdown between 4 – 6 weeks subject to satisfactory documentation submission.

Do I Have to Make Payments During the Term of The Loan?

The interest on the development loan is rolled up into the facility. Hence, no monthly payment is required.

Do You Lend to First-Time Developers?

Yes, we have many lenders who are happy to lend to first-time developers.

What Type of Developments Do You Lend On?

We can lend against the following development projects:

• New build
• Conversion
• Refurbishment
• Residential
• Mixed-use
• Commercial
• Eco-friendly
• Regulated or unregulated

Can You Lend Against Sites Without Planning Permission?

Yes, if your project is still awaiting planning permission, or you are varying the existing planning, we have lenders who are happy to lend.

Where no planning is in place, we can usually raise finance to fund you through planning.

Please refer to the Knowledge Bank section for more information