Testimonials

Hear what our clients are saying!

J. H-B.

I have used Sharon Harvey at Seafield Mortgages since my first property purchase in 2003. Whether you’re a first-time buyer, an existing homeowner, looking to re-mortgage, or a property investor, Sharon will go out of her way to find the right mortgage deal for you and save you £100’s each month. In a market where it has become increasingly difficult to borrow, knowing which lender and deal are right for you can be daunting. Sharon is well qualified, clear, practical, highly knowledgeable and able to deal with both the most simple and complex situations. Sharon goes the extra mile with her dedication and impeccable customer service. 

"Our key aims are to fully understand what you are looking to achieve, create a solution tailored to your needs, deliver results through an excellent service and build a relationship for life".

"We have access to a wide range of mortgage and insurance providers to ensure we can find you a competitive financial solution, which meets your needs and your budget".

"We specialise in providing advice and guidance on Mortgage and insurance products but I can also put you in touch with trusted partners for help with Pensions, Investments and Wills".

Development Loans

Think carefully about securing other debts against your home.

Your property may be repossessed if you do not keep up repayments on your mortgage

Development Loans are a short-term loan for construction projects such as a residential development. 

Often this is used towards the purchase of land, or through stage payments to convert a property.

As with any loans, eligibility criteria applies and you’ll need to present a business plan and exit strategy when you apply for one.

Who would benefit from Development Loans?

Someone who has seen a site and have lots of experience to be able to build the scheme, but for whatever the reason, you do not have the deposit available

"We have access to a wide range of mortgage and insurance providers to ensure we can find you a competitive financial solution, which meets your needs and your budget".

The first stage of the funding can be used to help with the purchase of the development site. This could be land where a number of new properties will be built or for a  property that will undergo a refurbishment.

Development Loan Questions

What is a development loan?

What are the benefits of development loan?

Property development finance is a short-term loan for residential property developments, such as construction projects, and is usually advanced as a loan towards land purchase and a loan in stage payments for development costs in converting a property into flats or HMO's (Houses in Multiple Occupation).

• Rapid access to finance 
• No lengthy repayment period 
• Roll up interest 
• Low-interest rates 
• You can attempt more ambitious projects 
• It’s available on a wide range of projects  and properties 
• There’s a limited capital outlay 

The second stage of the loan is used to pay for the costs of the build works associated with the project. This is usually drawn in stages, or tranches, as opposed to being given in one amount at the outset. This often happens once a month as works are completed on the project. The build will be inspected at each stage.

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Buy-to-let

A property that the owner has bought in order to rent out to tenants.

Completion

The finalised sale and purchase of a property and at which point you become the owner.

County Court Judgment (CCJ)

A court order made against a person who has failed to pay a debt.

Decision in principle

An application likely to be accepted given the information received. It is not legally binding and may change when further information is disclosed.

Exit / exit strategy

In this context, the plan and approach to repaying the loan i.e. the capital at the end of the term. For example by sale or remortgage of the property which is given as security.

Fixed rate

A rate of interest which remains fixed for the entire period of the loan.

First charge

A charge in a first lien position on a property. A first charge generally has priority over all other liens or claims on a property in the event of default.

Intermediary

A broker or advisor who locates the most appropriate funds for a borrower, and makes the arrangements on the borrower's behalf.

Loan to Value (LTV)

The ratio of how much is borrowed compared to the value of the property. For a home worth £1,000,000, a £900,000 loan would be expressed as £900,000/£1,000,000 or 90% LTV.

New build  

Newly built properties. These can be either single homes or entire estates.

No bathroom no kitchen

A property in which there is no bathroom or kitchen. Usually such properties are   not eligible for high street mortgages but can be financed via bridging / short term-finance.

Retained monthly payments

To assist in meeting monthly interest payments, an amount can be retained from the loan representing a number of monthly interest payments. The retained interest is still part of the capital sum of the loan so interest will be charged on this amount.

Splitting title / title splitting

A legal process which involves in the case of registered land generally creating two title numbers. For example: A house and its surrounding land may be on one title number – splitting the title would involve putting the house on one title number and the land on another title number.

Self-build

A property built by its owner to live in.

Second charge

Similar to but ranking behind a first charge. Typically, it secures a second loan to any remaining value in the property after the first charge. For example: if a £100,000 home has a £50,000 first charge, a second charge may be secured against some of the remaining £50,000.

Staged facilities

A loan facility that allows a borrower to use the money at different times, as and when funds are required. For example in the case of a borrower building a property – the funds will be required at the various stages of the build.

Term

The period of time over which you take the loan.

Title deeds

A property's legal documents which show proof of ownership.

Valuation

A check of the property to assess its worth and suitability for lending.

Variable rate

An interest rate on a loan which fluctuates over time.

Valuation fee

The fee for the person or body which assesses the value of a property..

Development Finance Glossary

Development Loan Questions

Can you get 100% development loans?

What information is needed to apply for a development loan?

To get a 100% development loan deal, most lenders will want you to secure the loan against another property, more than one property or valuable assets you own and hold sufficient equity in. With this criteria met, getting capital with no deposit may be possible.

• Details of the development site – location, value, purchase price
• Development appraisal
• Development costs
• Details of the planning permission 
• Gross Development Value
• Details of all the applicants profit?
• Borrower(s) development experience
• Asset and liability statement for the applicants or company directors
• Company structure

Get in Touch

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