Development Finance

 

Hodge Bank has a long heritage of providing loan facilities for property development projects.

Our experienced team will be pleased to discuss your broad development proposals and detailed project appraisals. Our aim is to to develop bespoke lending solutions for your specific needs whilst our business structure ensures that decision timescales are short.

We generally lend for developments in the office, industrial, leisure and residential sectors. However, the type, financial structure and location of the project, along with the experience of the developer are typically the key drivers of our decision making. We ideally would wish to see an element of pre-lets or pre-sales in the proposal.

Each new lending facility is bespoke in nature and will be negotiated directly between us. However, typical parameters;
Borrower types Companies, SPV, partnerships, private individuals
Loan Size generally £1m – £15m
LTV up to 66% of total project costs; up to 60% of GDV.
Term by negotiation
Amortisation profiles interest roll up during the development phase then bullet.
Covenants Loan as a % of GDV / Pre-lets or Pre-sales
Security First legal charge, debenture, charge over JCT contracts, warranties
Interest Margin by negotiation
Fees by negotiation

Click here to view a selection of recent transactions.