Commercial property development finance is for the purpose of developing, redeveloping or refurbishment and conversion of commercial property. You can use this finance to purchase land that is for use for commercial purposes. Accessing this finance is by taking up loans from either the high street banks or other lending institutions or individuals. Just as with other types of commercial loans, the property or land that you are developing acts as the security in the development loans.
Many people are turning into commercial property development, which is why there is need for the development finance. When deciding to take up loans to provide finance for development of a commercial property, there are certain things that you need to take into consideration. You need to make sure to approach the best lenders for the loans. There are lenders who will advance you loans at very high rates of interest, which will mean you have to repay a huge amount. Get the lenders who have competitive rates.
The high street banks offer commercial loans at very strict terms and impose high rates of interest. Other lenders in the market are taking advantage of the fact that there is rapid growth in commercial property development and are therefore advancing these loans to developers at attractive rates. These loans for funding commercial projects are available for a period of one year or more making sure to provide funding for the building or acquisition of land and cover the costs of development.
The development costs may include fees for professionals such as architects and land surveyors. Many lenders of these development loans may require you to provide them with your repayment strategy or a way in which you will pay back the loan. Generally, commercial properties usually payback the loans once they are operational. This is especially when you let out the premises, lease and even sell at a very high profit.
Commercial property development finance also works with mortgage lenders, which makes you have access to suitable mortgage products for commercial property. This is available of you want to acquire property which will appreciate and bring you rental income. Identify the commercial finance suitable for your property development needs to kick-start your projects.