The UK's Specialist Development Finance Broker
An independent development finance broker with extensive experience in securing market leading funding for developers of all experience.
Development Finance Funding Solutions
-
80% of completed project value
-
Ground Up Development Finance
-
Permitted Development Finance
-
Refurbishment Finance
-
No Personal Guarantee Option (full/Ltd)
-
Development Exit Finance
-
Land Mortgages
-
Pre Construction Loans
-
Structured Property Finance
-
Mezzanine Finance
-
Joint Venture/100% Funding
-
PBSA Specialist
How Montpelier Private Finance Assists Our Clients
As a specialist development finance broker we offer extensive experience in sourcing market leading commercial finance solutions across both residential and commercial asset classes. Whether it is a ground up development, permitted development, refurbishment project or development exit required, we commit to offering thorough due diligence in order to obtain a successful application with the best lender for you.
Types of Development Projects
A Tailored Approach
We understand that every development project is unique. We take the time to fully understand your particular project and source a funding package that is right for your needs. Whether its regular senior debt funding, stretch senior funding, mezzanine finance or Joint Venture (JV) funding we are able to source the best funding solution.
We are a leading UK broker for Purpose Built Student Accommodation (PBSA) schemes. Our deep understanding of these specific development schemes coupled with our relationship with specialised lenders ensures that you can secure the best funding terms available. For more information visit our PBSA Finance section here
A PBSA Specialist
Current Products
As a specialist development finance broker, Montpelier Private Finance sources funding from, but not limited to, family wealth offices, challenger banks, high street banks, private funds, pension funds and offshore institutions. Below are just a small selection of the current funding opportunities offered by our lending partners.
Stretch Senior Lending Up To 90% LTC Net
-
Lending up to 90% LTC net of finance costs
-
Rates of just 9.6% pa at 75% LTGDV
-
Funding from £1.5m - £10m
-
Asset classes include residential ground up & PD, mixed use, PBSA, PRS, commercial & hospitality.
-
Modular construction welcome
-
Funding available across England, Wales and Scotland
-
A lender that can execute funding quickly
Development Finance With Only 4% Hard Equity Required
-
Planning enhancements and value adds considered towards the borrower equity contribution (a minimum of 4% hard equity required)
-
Up to 70% LTGDV / 90% LTC gross (lower thereof)
-
Residential and non-residential asset classes welcome
-
Loans from £5m - £50m
-
Funding available across England and Wales
Development Finance Up To 90% LTC
-
Up to 75% LTGDV / 90% LTC (lower thereof)
-
Funding from £500k - £4m
-
Available for new build, conversions, refurbishment and equity release
-
For residential development projects
-
Available for individuals, UK Limited Companies, Limited Liability Partnerships and offshore borrowing entities in approved jurisdictions
.jpg)
Mezzanine Finance With Limited PG's
-
A lender that will match the Personal Guarantee requirement of the senior lender
-
Funding available up to 80% LTGDV
-
Loans from £500k - £5m
-
All asset classes considered
-
Available across the UK
Case Studies
Agricultural to residential development
90% LTC facility
No personal guarantees required
Development Finance Frequently Asked Questions
If you are new to development finance and want to learn more you can visit our 'Development Finance Explained' page that sets out the different types of development finance, the criteria lenders use in making a decision, what a development loan is comprised of and the documentation required for a development loan. Below are the answers to some some frequently asked questions.
What is LTGDV?
LTGDV stands for Loan to Gross Development Value. This is where the finance is procured against the market value of the property once completed.
What is LTC?
LTC stands for Loan to Cost. This is where finance is calculated against the cost of the project, including purchase price (if applicable).
How much can I borrow?
Montpelier Private Finance arranges development finance from £500k with no maximum loan size.
What is the maximum leverage that I can borrow?
All cases are dealt with on an individual basis but we are able to arrange funding up to 75% LTGDV / 95% LTC (lower thereof).
What is the maximum loan term I can secure?
The maximum term is 36 months. For projects that are approaching completion we can arrange development exit finance when required.
Do I need experience to obtain development finance?
No, we can secure funding for first time developers.
Do I need to use a development finance calculator?
When applying for development finance there are a large number of variables to consider such as whether lender fees are added or deducted and whether interest is rolled up or retained. With this in mind we will identify the appropriate lender and calculate the costings for you.
How much deposit do I need for development finance?
Lenders will typically expect to see a minimum equity commitment of 10% of all costs in order to demonstrate the developer have sufficient 'skin in the game'. However, there are lenders that will recognise planning enhancements and value adds which reduce the hard equity requirement to as little as 4%.
Can I borrow funds to pay for professional fees?
Yes, you can borrow funds for fees such as architects, engineering consultants and legal costs.
Do I have to make monthly payments with development finance?
Most development finance facilities are arranged so that monthly interest charges are added to the existing loan and then repaid when the loan is redeemed. This is because income is only generated once the development is completed.
Why do I need a broker?
A development finance broker will be able to comprehensively review the funding requirement to ensure that it is presented to lenders in the strongest possible light. At Montpelier Private Finance we have access to lenders who are not direct to market, ensuring that our clients get the keenest funding package. You can read more here.