Top 5 tips for a successful property development finance application
Know what you want
Make it clear from the start the property development loan amount you need, and timescale required. Provide a detailed development appraisal that can demonstrate to the lender you have a viable and financially successful project. This will give your lender the information and confidence to arrive at a quick decision.
Be open and transparent with detail
Be clear with details; what you perceive as a negative, might not seem as such to a lender. It will show you have considered every aspect. If a lender is left to make their own assumptions, they are likely to be more cautious with their decision-making. In any event their due diligence will probably reveal undisclosed detail later in the application and will cause delay while the problem is sorted out.
Respond to information requests promptly
Lenders need information to move from one step to another. If you are unclear on the question asked, contact them and talk through what is required. Guessing or providing partial information will only introduce further interruptions.
Avoid last minute changes to the loan requirements
Late changes only delay the process and will raise doubts as to your ability to manage the project. Provide clarity from the outset – confidence and accuracy will demonstrate to a lender a developer’s understanding of the project and their ability to complete it.
Instruct an experienced Solicitor
Ensure that you instruct a solicitor with experience and knowledge of land and property development transactions rather than just conveyancing. They will fully understand that a property development loan must draw down quickly and thus be responsive. The most common reason for delay in making a property development loan is if the Borrower’s solicitor is too slow to respond to enquiries.
RQ Capital offer independent property development finance for residential property development. Our in-house lending, with more than 30 years combined experience, means you connect direct with the decision makers for a fast, reliable and sound decision.