Here at Zuplex, we differentiate development finance from standard refurbishment finance by the anticipated length of a proposed loan. If the term is anticipated to be more than 12 months, it is likely that even the most complex of refurbishment project should funded by a specialist development lender.
With both short-term and medium-term lenders often competing for the same business, we find that our 12 month rule generally ensures that funding requirements get placed with the most appropriate lender and one that is most suited to the needs of the borrower.
The recent recovery in the availability of finance for developer clients has been nothing short of miraculous. It is not that long ago that development loans were restricted to only the most experienced and credit-worthy of developers with the largest risk capital to commit.
With appetite from the big retail lenders remaining subdued, there has been an explosion in the number of lender participants who are attempting to fill the void. Whether it be a famous insurance company, debt fund, asset manager or private lender there are many who are now carving out a real niche in this long underserved market.
More choice means choices and an increase in the importance of getting the right advice. We value the importance of being able to help either a relatively highly geared, less experienced developer with a development facility or a property company with a lengthier senior debt position on a multi-unit scheme.