Criteria for a Development Loan.
n today's video, I will be talking about what criteria normally needs to be met to be granted a development loan.
Lenders will want to ensure their interests are protected, and will normally consider a number of criteria including:
The type of construction of the property being developed.
The location and commercial viability of the development.
The credibility of the exit strategy (for example, are similar properties selling well in the area?)
The ability to place a legal charge over the property, and personal guarantees.
The property development experience of the borrower, and the professional team involved in the project.
The borrower’s residency.
Evidence of the borrower’s ability to pay the deposit.
The nature of, and domicile of any legal business entity involved in the application.
The borrower’s credit history.
The status of the planning consent.