David Rainford, property finance director at Cowgill Holloway, explains how to secure the best deal when it comes to development finance.
From senior debt to stretched senior, mezzanine and equity providers, there are more lenders in the market than ever before and with appetite to fund schemes in the North West.But identifying the best lender suited to your scheme and obtaining support can often be a challenge. Here are my top 5 tips to secure development finance:
Be frank in your dealings and present a ‘warts and all’ picture based on facts. It is far easier to mitigate issues at the outset rather than back tracking at a later date. Demonstrate your experience and that of your team through previous and current projects. Support your case through appraisal based evidence and comparable sales and cost information with back up from your professional team. Accept that demonstrable ‘skin in the game’ will be essential. Be realistic in your expectations on pricing relative to the risk profile. In short, a well presented application with the correct supporting information, pitched at the right level within a carefully targeted lender.