Best finance options for property developers in the UK

Property development can be a lucrative business, but it also requires a significant amount of capital. Whether you're just starting out or are an experienced developer, it's important to understand the various financing options available to you.

In addition, Cavendish Capital provides bespoke finance solutions for Property Developers. Property development finance is unique to every project, which is why we offer a personal touch. We have 30 years of experience with development finance and you can trust us to get the process right.

Here are some of the finance options for property developers in the UK:

Traditional bank loans: Banks are the most traditional and common source of financing for property development. They offer a variety of loan options, such as term loans, lines of credit, and construction loans. The interest rate and terms of these loans will depend on the creditworthiness of the borrower and the value of the property being developed.
Bridging loans: Bridging loans are short-term loans used by property developers to quickly acquire a property and begin development, with the expectation that the property will be sold or refinanced shortly. They come with higher interest rates and are intended for short-term use, but can be useful for developers looking to take advantage of a quick opportunity.
Crowdfunding: Crowdfunding is a relatively new form of financing that allows property developers to raise money from a large number of individuals. This can be a great option for small-scale developments or for developers who don't have a strong credit history.
Mezzanine finance: Mezzanine finance is a type of loan that sits between traditional debt and equity. It is typically used to fund the gap between the cost of development and the amount that can be raised through traditional debt. The lender will typically take a percentage of the equity in the development as security.
Joint ventures: A joint venture is a partnership between two or more parties to develop a property. This can be a great way to share the risk and costs of development and also bring in additional expertise.
Government funding: The UK government offers a variety of funding schemes to support property development, particularly in areas of high demand or where there is a shortage of housing. These include schemes such as the Build to Rent Fund and the Affordable Homes Programme.

Ultimately, the best finance option for a property developer will depend on their individual circumstances, including the size and scope of the development and their creditworthiness. It's important to speak with a financial advisor to determine which option is best for you.

Cavendish Capital provides bespoke finance solutions for Property Developers. We have 30 years of experience with development finance and you can trust us to get the process right. To learn more about your property development finance options you can contact us via our website, live chat, or telephone.