Funding for Property Projects

Seeking capital for your next project? We connect qualified borrowers with 120+ lenders offering property development funding. Learn more here.

Need funding for property projects?
Whether it’s development, renovation, or construction costs, property development finance could be the ideal solution.

Understanding Property Project Funding

Property development financing supports various projects, including residential, commercial, and mixed-use developments. It offers financial products like long-term loans, mortgages, short-term bridging loans, and personal financing for construction or renovation.

The broader “property finance” term encompasses services such as bridging loans, development funding, business mortgages, and property auction financing.

Discover property project funding here.

How property project funding operates.

Property project funding is tailored for developments like housing, office spaces, or regeneration. Loan amounts are based on the project’s estimated final value, with terms ranging from months to years. Available to individuals, developers, and construction firms, this financing can require business plans or focus on credit scores, depending on the lender.

Various Property Project Financing Solutions

We connect eligible borrowers with over 120 lenders offering various property development financing solutions, including:

Covers construction costs like labor, materials, and interior or structural changes.

Funds land acquisition and part of construction costs, covering 70-80% of expenses.

Supports transforming properties for new uses or expanding existing buildings.

Short-term bridging loans for immediate funding needs, with interest-only payments until permanent financing is secured.

Long-term finance for large renovations, repaid monthly over 15-30 years.

Why Choose Corporation Capital for Property Project Funding?

With a strong reputation for excellence, we’ve helped over 17,000 clients secure more than £800M in funding, including for property development.

Designed for larger developments, these loans cover land acquisition and part of construction costs, financing 70-80% of total expenses.

We partner with 120+ lenders, offering funding from £1,000 to £20M.

We match borrowers with the best lenders and financing options for their business needs.

Our broad network ensures we connect borrowers with the most suitable financing solutions.

As Bright Green Homes States:

“Funding Options took the time to truly understand our business and financial needs. Unlike traditional banks, they prioritized a meaningful conversation and personalized support.”

Simmons Bar: An In-Depth Analysis

Jason sought to expand his cocktail bar business by opening a new location in Soho, Simmons Bar. However, the bank only approved £25,000 of the £50,000 he needed. That’s when he turned to us for help.

We helped leverage the success of his existing London-based bars, securing the full £50,000 from RateSetter. This funding allowed him to complete renovations on time. He also appreciated the loan’s flexibility, with no penalties for early repayment and the option to request additional funds if needed.

Let me know if this works!

Frequently Asked Questions About Property Project Funding

How Lenders Determine Loan Eligibility

Lenders assess several factors when approving a loan application, including your credit score, financial history, income stability, and the loan’s purpose. They also evaluate your debt-to-income ratio to gauge your repayment ability. For commercial loans, lenders may require collateral or business performance data. These criteria help lenders determine the level of risk and whether you meet their eligibility requirements.

Required Documents for Loan Applications

When applying for a loan, you’ll need to provide key documents, including proof of identity (passport or driver’s license), proof of address (utility bill or bank statement), and evidence of income (pay slips or tax returns). For a business loan, you’ll also need financial statements, a business plan, and bank statements. Some lenders may request information on existing debts or liabilities.

Understanding Interest Rates

Interest rates vary based on factors like the loan type, lender, and your financial profile. They are influenced by the loan amount, repayment term, and your creditworthiness. Lenders may offer fixed rates, which remain the same throughout the loan term, or variable rates, which fluctuate based on market conditions. Comparing rates from different lenders is essential to secure the best terms for your needs.

Additional Fees to Consider

In addition to the interest rate, loans may come with additional fees such as application charges, administrative costs, or penalties for early repayment. Some loans may also include fees for late payments or account management. Be sure to review the loan agreement thoroughly to understand all potential costs and avoid any surprises later.

Consequences of Missing a Payment

Missing a loan payment can lead to several consequences, including late fees or penalties as outlined in your loan agreement. It can also damage your credit score, making future loans or credit harder to obtain. In some cases, lenders may raise the interest rate or take legal action to recover the debt. It’s important to communicate with your lender if you’re unable to pay, as they may offer flexibility or alternative arrangements.

Repayment Methods for Your Loan

Loan repayment typically involves regular payments over a set period, covering both principal and interest. Some loans offer flexible options, such as automatic payments to ensure timely payments and the possibility of early repayment without penalties, allowing you to pay off the loan faster and reduce interest costs. Review your loan agreement to understand your repayment schedule and available options.

Impact of the Application Process on Your Credit Score

Applying for a loan can impact your credit score, especially with hard inquiries, which may cause a temporary dip. Multiple hard inquiries in a short period can have a bigger effect. Soft inquiries, like pre-qualification checks, don’t affect your score. Be mindful of how often your credit is checked to avoid unnecessary impacts.

Is a Property Required Before Applying?

For general financing or business loans, you typically don’t need a property selected. However, for mortgages or property-specific loans, lenders may require property details as collateral. It’s best to have a property in mind or know what you’re looking for before applying for property-based financing.

What is GDV (Gross Development Value)?

GDV (Gross Development Value) is the projected total value of a property or project once completed. Used in real estate and property development, it helps assess profitability by estimating potential revenue from sale or rental income after construction or renovation.

When Is Loan Repayment Due?

The loan repayment schedule is based on the terms set with your lender, typically involving regular installments (monthly or quarterly). The due dates and any fixed or flexible repayment terms will be outlined in your agreement. Review the details to ensure timely payments and avoid penalties.