Property development finance helps fund construction, renovation, or redevelopment projects. It can cover land purchase, building costs, and related professional expenses.
Lenders typically finance 70-80% of total development costs, depending on project type, lender criteria, and expected end value.
The main types include development loans, bridging loans, commercial mortgages, mezzanine finance, and equity finance.
Developers apply for funding with a detailed project plan. Lenders assess feasibility, budget, and timeline before approving terms and disbursing funds.
Loan terms vary but usually range from 6 months to 2 years for development loans. Longer terms may apply to commercial mortgages.