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Real Estate Development Loan

(Any Purpose - Any Amount - Any Background)

Real Estate Development Loan

(Any Purpose - Any Amount - Any Background)

Fast & Flexible “Real Estate Development Loan” through us

“Real Estate Development Funding is for the development or refurbishment of residential, commercial, or mixed-use properties. Property development finance is a type of funding used to finance the construction, conversion, or heavy refurbishment of buildings. Once the project has been built out, the loan is usually repaid through the sale of the property, or refinance”

Esteema specialized in Real Estate Development funding for

  • Residential Properties development loan
  • Commercial Properties development loan
  • Land Development loan
  • Incomplete Project development loan

Why Real Estate Development is required

  • Real estate development can generate bigger ROI for real estate developers by applying for it larger schemes. Even they can get great profit by investing less money
  • Property developer can take loan to continue cash flow so that there is no stoppage in project
  • Even when you need to renovate the property and add additional stuff to your property, you can take real estate development loan.
  • Affordable housing schemes has influenced real estate developers to apply for quickest and bother free real estate development loan

What makes Esteema Real Estate Bridging Loan DIFFERENT?

  • Real Estate Finance & Investments Experts
  • Syndicate Funding Structure: Lending, Financing & Funds Raising 
  • End to End Funding Structure: Senior Debt, Mezzanine, JV & Equity
  • Exceptional Pool of Funding Line – No Upper Limit
  • Revolving Credit Line for Multiple businesses 
  • 360º Credit Risk Mitigation Underwriting for assured success.

Real Estate Development Finance is a very complex procedure that requires expertise in both Real Estate and Corporate Financing along with Construction know-how. The good news is that our unparalleled specialities in Development Finance will help you to arrange finance where traditional finance cannot compete. We have special funding facilities to support the real estate development industry for

Any Purpose –  Any Amount – Any Background.

Esteema Development Funding Special Terms

Other Traditional Lender
Any Location✓ UK (All Location) & Globally (selected location) ✓ Very Limited Appetite
Any Development ✓ Residential,
✓ Commercial or Mixed
✓ Hotel & Leisure
✓ Healthcare,
✓ Student Accommodation & PBSA
✓ HMOs
✓ Shopping complex etc

✓ Very Limited Appetite
Any Background✓ First Time Developer,
✓ Experienced Developer
✓ International Developer

✓ Very Limited Appetite
Any Purpose ✓ New Development,
✓ Refurbishments,
✓ Conversion,
✓ Land with or without planning
✓ Distressed Situation

✓ Very Limited Appetite

Esteema Real Estate Development Loan Special Pricing

Low leverage

Interest Rates from:
0.35% pm (4 – 4.5% PA)

Loan to Cost
55 – 60%

Loan Size
No Upper Limit

Loan Term

Medium leverage

Interest Rates from:
0.55% pm (5 – 6.5% PA)

Loan to Cost
70 – 80%

Loan Size
No Upper Limit

Loan Term

High Leverage

Interest Rates from:
0.65% pm (7 – 9% PA)

Loan to Cost
85 – 90%

Loan Size
No Upper Limit

Loan Term

Real Estate Development Finance Guide

Real Estate Development Funding Documents

The following are the standard documents required for Real Estate 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

Real Estate Development Finance Process

  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.

Real Estate Development Finance Costs

The following costs should be considered at the time of availing the Real Estate 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

Real Estate Development Finance FAQs

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.

Jargon Buster

Please refer to the Knowledge Bank section for more information

Key Factors Affecting the Real Estate Development Loan?

Borrower Profile

✓ Personal & Business Profile
✓ Professional Team Profile
✓ Experience & Track Record
✓ SPV Structure & Location

Collateral Profile

✓ Development Type
✓ Residential / Commercial / Mixed
✓ Location
✓ Sales & Rental Demand

Exit Strategy

✓ Sales
✓ Rentals
✓ Mixed
✓ Refinance

Esteema Syndicate & Structured Financing Expertise provides the complete peace of mind. Please contact us in confidence for

‘Quick Decision – Quick Financing’

Contact us

Please send us the ‘DETAILED INFORMATION’  for the ‘Quick Decision & Quick Financing’

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