Property development finance could be the answer

The thing that sets property development finance apart from other more traditional forms of finance is the fact that until the property has actually been designed and constructed, it may have very little value. The land the property is to be built upon will have some residual value, but will not cover the cost of repaying the full loan amount if it remains an empty piece of land.
For this reason, commercial finance lenders are extremely cautious when considering loan applications to finance new developments because the risks involved can far outweigh the potential gains and there is no guarantee that they will get their money back. Due to this increased risk, lender will usually apply a higher rate of interest to property development finance than they would for a typical residential mortgage.
A property developer can usually get 100% development finance both for large scale property development and renovations. For 100% development finance in larger projects, lenders tend to have strict requirements in terms of their lending criteria and/or higher than normal interest rates. For 100% development finance via property refurbishment loans which tend to be smaller, additional security is usually required
Should 100% funding be necessary, then property development finance could be the answer which is a combination of short and long term loans covering both the purchase of the site and the associated building costs. The interest payments are aggregated at the project's conclusion when the properties are either refinanced or sold on for a profit.
If you are able to put up additional security against the loan then you are more likely to be approved for 100 percent property development finance. Obviously, those developers who are experienced in developing and refurbishing properties will know this but it can sometimes be overlooked by those with little or no experience. Putting up an additional property to be secured against the loan can go a long way to securing 100% of the finance required.
When it comes down to interest rates for property development finance then these will vary considerably on the individuals' personal circumstances. Some factors that are considered include the size of the project, your future plans for development and how much it will be eventually worth. The majority of lenders will give you an interest rate of around 1.5% and 2.5%. When it comes to getting the cheapest rate a commercial finance broker will be able to source the whole of the market to find you the best deal for your specific circumstances. Lenders prefer to deal with brokers and will allow brokers to negotiate to get a cheaper interest rate based on the circumstances of the individual and their proposal.
Before approaching any lender and starting the application process for property development finance, you should prepare all of the relevant documentation in advance because you will be asked to show certain documents in support of your application. Every application for property development finance will need to be accompanied by a whole array of supporting documentation and that is where a broker can help you package the application and present it in a much more favourable light to the lender.
Contrary to popular belief, not everyone who applies for development finance will need to be a company. Loans can be arranged for individuals who are looking to build commercial premises or residential property, or to purchase existing businesses such as pubs and restaurants.
A commercial finance broker is more likely to have a better knowledge of the various options involved with property development finance and because of their contacts, will be in a better place to find exactly the right deal. The developer could also benefit from their experience when drafting a proposal, ensuring that the proposition is well presented and in an easy to understand format.

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