Residential Development Finance

BLG residential development finance provides a bespoke financing solution for residential developers across England, Wales and Scotland. BLG, established in 2003, has the necessary experience to help residential developers overcome the boundaries that can be stipulated by the high street banks. As a solution driven organisation, our business is purely focused on helping you build.

BLG provides residential property development finance to house builders and developers on competitive terms. We promise to provide a lending decision quickly so that residential developers can move quickly to purchase and secure their site or, if the site is already owned, to begin the building works.

Residential property development loans are available on a first charge, second charge or joint venture basis:

First Charge
Stretch Senior Development Finance is a first charge debt that overcomes some of the barriers typically found on the high street. Lending by the high street banks is normally restricted to 50% of the Gross Development Value, but BLG can typically arrange 65% of loan to GDV and 80% loan to cost plus the interest rolled up on top.

This residential development finance is usually a loan of between £500,000 and £10 million and is short term debt offered over 12 to 24 months. A first charge debt can be used to fund part of the land purchase cost, to fund the build, to improve cash flow or to free up the developer’s cash in order to fund an additional residential development.

Second Charge
Mezzanine Finance, also known as a ‘mezz loan’, is a second charge debt which allows residential home builders to top up their level of finance. With loans between £250,000 and £3million, mezz loans provide up to 90% loan to cost and 70% loan to GDV.  This funding can also be used to help improve project cash flow, on occasion it allows the developer to free up cash to purchase additional land or fund a secondary project.

Joint Venture
JV and Equity Finance loans from BLG are for experienced residential developers and may provide up to 100% loan cost. Joint venture partners invest through a profit share agreement or through shares held in a specially created Special Purpose Vehicle. 100% loan to cost can be achieved, for example, through a senior debt loan to 80% and an additional 20% joint venture offered via BLG’s High Net Worth investment partners.

Residential Development Funding
Residential development funding is usually not a remote process and BLG takes the time to get to know our customers and their projects. We aim to talk and meet regularly and we are open to feedback and ideas.

Your building success through residential development loans can be supported by our team who have a combined 250 years of experience in banking, real estate, investment houses and financial companies.

To get in touch with BLG to discuss or arrange residential development financing, please call 0845 465 6500 or send us a message and your local BLG Regional Director will get in touch.

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