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Property Development Finance

Geared towards real estate developers and investors, property development finance is designed to fulfil funding needs for construction projects. This specialised loan is secured using the development project as collateral and is released in incremental stages, known as drawdowns, to align with the various phases of the development.

We provide fast turnaround property loans ranging from £200,000 to £4 million.

What can Property Development Finance be used for:

Construction on new residential or semi-commercial projects.

Residential refurbishment projects.

Property Loan

Purchase
of properties.

Development exit.

Our specialised property finance team has extensive experience in the UK market, particularly in lending during market downturns.

Property Development Finance | At a glance
Loan Amount£200,000 – £4 million
Loan TermUp to 24 months
Security1st legal charge
LeverageUp to 75% LTV and 85% LTC
Interest RateStarting at 1.3% per month (fixed)
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Eligibility Requirements:

  • All proposed developments are required to have full and valid planning consent before any loan is agreed and paid.
  • Borrowers must commit their equity into the development before any funds are released.
  • We can fund borrowers across the UK including England, Wales, Scotland and Northern Ireland.
  • The borrower can be a limited company, a partnership, an LLP or sole proprietor.
  • The borrower must be able to demonstrate a good track record in UK property development, investment or management.
  • Personal Guarantees (PGs) will need to be signed by any individual related to the funding as deemed required by us.
  • The borrower must be domiciled in the UK.
Secured Loan - Property Developer

Requirements for Property Development Finance with Momenta Finance.

  • Cost Plan and Schedule: A detailed cost plan and schedule are essential to assess the viability and budget of the project.
  • Borrower’s track record: Lenders usually review the borrower’s track record in property development to assess their ability to successfully complete the project.
  • Planning Reference Number: The planning reference number is necessary for lenders to verify the planning permission status and details of the project.
  • Application Form: Completed Momenta Finance application form.
Speak to our property team

Recent Borrower Success Stories

Supporting UK-based SMEs is what we do.

  • Lounge of recently refurbished Camden flat in London
    Transforming a Camden Gem: Secured Loan for Apartment Refurbishment
    “As a young property developer, securing financing for my initial project was a daunting task. However, working with Momenta made the process seamless. They were incredibly understanding of my situation, flexible in their approach, and remarkably quick in financing the bridging loan I needed. His support not only gave me the confidence to proceed with my development but also set a solid foundation for future projects. I truly appreciate their efficiency and professionalism and would highly recommend him to anyone in need of reliable and responsive financial support within the development sector.” – Aboubacar Traore, Director of Maroset

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Frequently Asked Questions

What is Property Development Finance?

Property Development Finance is a type of funding specifically designed to finance the construction, conversion or heavy refurbishment of buildings.This type of financing is essential for developers who need substantial upfront capital to cover the costs associated with various stages of property development, the loan is usually set up as a short-term loan to fund the project only during the build.

What is the loan term?

The loan term for the overall development will typically range between 18 and 24 months. The funding for the development will be drawn in “tranches” to meet the cashflow requirements of the project as set out by the monitoring surveys confirmation and as per the planned build schedule.

When is the principle paid?

The principal is repaid at the end of the loan term when completed properties are sold. We do allow for early repayment from sales completing and will not charge any fees associated with early repayment.

How is the debt serviced?

The interest is rolled up for the duration of the loan and only charged on utilised funds as and when they are drawn.

Why Choose
Momenta Finance

Small business loans are what we do, all day, every day. Our specialist team from account management through to credit understand businesses just like yours and want them to succeed.

We are a member of the Federation of Small Business (FSB), Consumer Credit Finance Association, Association of Alternative Finance Brokers and a Patron of the National Association of Commercial Finance Brokers (NACFB). We are also registered with the Financial Conduct Authority. This means we adhere to their codes of practice and are uncompromising, in our principles and practise ethical and responsible lending at all times.

Good to know

Momenta Finance, acts as both a lender and a broker. Where we act as a broker, we receive a commission from the lender. This does not impact the final amount that you pay for borrowing.

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Get started on funding your business today 

Reach out to us at 0800 848 8480 or contact@momentafinance.co.uk
to register as an Introducer, or request a quote to see how we can help you achieve your goals.

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