At the Finance Equation, we take care of all your commercial property finance needs and provide services for clients throughout London and Essex. We have relationships directly with lenders and can get you a decision in principle within 24 hours. Our lenders provide competitive rates with a loan to value, LTV, of up to 70%. In some cases if you have additional security we can provide you will 100% finance for your acquisitions.
You are likely to get the best interest rates if you have an excellent credit rating and have the right experience and track record. On your first financing arrangement with a new lender, you are likely to pay a slightly higher rate of interest. However, this will reduce further lending with the same lender. All our lenders are happy to lend to Limited companies and LLP partnerships. Lending and financing can take anything up to eight weeks. It all depends on how quickly you provide the lender with the information they ask for.
There are several types of financing available to developers:
This type of development covers developing houses and flats from brown and greenfield sites. It can also cover converting a house into flats or converting flats back into houses. It’s not carried out for owner-occupation and so comes under broker services.
Residential development services are offered to clients that want to improve or extend their home but are unable to get the money needed to do so from their bank or building society. To support, this, development loans for residential improvement are backed up by the home being developed and so are not usually based on what the individual can afford to repay.
This kind of development financing covers units like shops, offices, warehouses, and factories. Semi-commercial units are units that have a flat above them.
Financing on these properties can be used for plenty of short-term reasons such as handling a drop in cash flow, buying stock, or paying taxes. Please keep in mind that borrowing like this will be based on the value of the security; the land or estate being developed. “Goodwill” isn’t included in the valuation at all. For the lender, the only value they see is in the possession of the vacant property and not the value of the business moving forward.
Self-build financing is generally arranged on a personal basis. This kind of funding is for people who are looking to build their own house and live in it themselves. Financing like this is arranged through a mortgage and is FCA regulated. The rules surrounding the affordability of the mortgage are generally in compliance with the rules and regulations of a standard residential mortgage.
This kind of development funding is for when properties need to be completely renovated. It generally covers derelict buildings that have all their walls but no doors, windows, or utilities. If the renovation project is for owner-occupation then the finance is FCA regulation. If the house is to be sold upon renovation, then it won’t be FCA regulated.
There are plenty of different types of development services provided. You can discuss your options with a broker and find the right deal for you.
We can support any requirement and anything above £100,000 for bridging finance. If you are looking for a long term business loan, we provide capital above £500,000, however, if you can show that you can do future deals we can fund below £500,000. To get the best rates of interest and LTV you would need to have a perfect credit rating and a strong track record of completing deals. Some transactions can only be funded at 50% LTV e.g. A4 permissions, if A4 usage is purchased for conversion to flats or redevelopment then a higher LTV can be achieved.
We provide professional business services throughout London and Essex. We love to hear from new clients, if you would like a callback, call us on 020 3086 7472 and one of our qualified accountants will be in touch.
The Finance Equation Ltd is a company registered in England & Wales. Company number 05116983.
Business address: Finance Equation Ltd, 334 Ley Street, Ilford, Essex, IG1 4AF.
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