Commercial Property Development Finance
Commercial Property Development Finance
Our commercial property development finance capabilities fund the ambitions of businesses and developers looking for their next investment opportunity.
At Secure Trust Bank, we offer loans for commercial pre-let and pre-sold developments. These are ideal for helping you purchase the right land to kick-start your future development plans.
The commercial property market offers excellent rewards, and our finance specialists are here to help you every step of the way.
What is Commercial Property Development Finance?
Commercial property development finance supports you with the development or heavy refurbishment of existing and proposed commercial sites with suitable planning permission and a pre-let to a reputable occupier or a pre-sale in place.
Our short-term loans exist to get your next commercial development project started. To meet the terms of a pre-let proposal, a contract between the potential tenant of the proposed commercial property and the developer will need to be in place before the drawdown.
Get in touch
Our expert team is here to guide you through your journey. Tell us about your needs, and we will be happy to help.
If you already have a relationship with one of our team members please visit, Meet the team.
How does it work?
This type of property development finance is a fully-funded development loan with equity release considered on land purchases and planning gains. Funds are released against monitoring surveyor reports.
Property types eligible for this funding include refurbished and newly built units such as:
- Offices
- Logistics
- Hotels
- Other commercial use properties
Who is it for?
This loan is suitable for individuals, partnerships, UK corporate borrowing entities and UK-based ultimate owners who have a portfolio of work in the commercial development market.
However, there are a few other things to consider before applying for this loan due to the specialised nature of the commercial property industry.
Key features
| Facility type | Fully-funded development loan - equity release considered on land purchases and planning gains |
|---|---|
| Minimum loan size | £2,000,000 |
| Maximum loan size | £45,000,000 |
| Max term | 36 months |
| Drawdown | Funds released against monitoring surveyor reports |
| Repayment | Rolled interest with bullet repayment on exit |
| Max LTC | 85% |
| Max LTGDV | 65% |
Lending criteria
Property types
- Refurbished and new build units, including offices, logistics, hotels and other commercial uses
Borrower types
- Individuals, partnerships, and UK corporate borrowing entities
- UK-based ultimate owners
- Experienced with a demonstrable track record
Security
- First legal charge over the property
- Collateral warranties
- Debenture over the borrower
- Assignment over build contract
- Personal or corporate guarantees
- Other security as required
Tenure
- Freehold or long leasehold
Other things to consider
- An agreement to lease must be in place before the drawdown of the loan
- The creditworthiness and quality of the proposed tenant will be considered
- Up to 60% of the land value may be lent on day one
Applying
A commercial property development loan is based on the viability of your project and your experience as a commercial developer.
This includes your project’s revenue and profit potential. The following steps outline a typical application process:
- An on-site visit to discuss your requirements
- We provide our non-credit-backed heads of terms
- If you’re satisfied with our terms, sign and return
- We submit to credit and receive sanction
- Solicitors and valuers review all the legal requirements
- You’re ready to drawdown your loan
How we can help you?
We’re dedicated to helping you achieve your development goals with lending solutions tailored to meet your specific project needs.
We’re committed
We are committed to providing funding to help small to medium sized property developers and investors in the UK.
We’re responsive
Our experienced team can deliver fast, flexible lending decisions.
We’re reliable
As an established, well-funded and capitalised UK bank we will support investors’ and developers’ needs as they grow.
We’re personal
Our relationship led approach means your Relationship Director will manage the process through the life of the loan.