Property Development Loans

A property development loan is a type of financing used to fund the construction or renovation of residential, commercial, or mixed-use properties.

These loans are generally used to finance development projects from start to finish, covering costs like construction materials, labour and fees for professionals.

At Blue Square Capital, we have over 30 years of experience working with property investors and developers, helping them access funding whenever they need it.

At Blue Square Capital, we offer quick loans between £250,000 – £2 million up to an LTV of 70%.

Our team work quickly, providing indicative turns within 24 hours.

Once we are happy to go ahead with the loan, we work with specialist solicitors that will aim to have the funds with you within 2 weeks.

If approved, you’ll have 15 months to pay back the loan, giving you plenty of time to complete your development project or apply for refinancing.

If you have found a property you would like to develop, get in touch with us today to find out if you qualify for a loan.

With a property development loan, you can develop various types of properties.

Some of these include:

Residential properties such as:

• Single-family homes
• Townhouses or duplexes
• Apartment buildings
• Housing estates (multiple homes or units within a community)

Commercial Properties such as:

• Office buildings or complexes
• Retail spaces such as shopping centres or individual shops
• Warehouses
• Hotels
• Restaurants
• Cafes

Mixed-Use Developments such as:

• Properties that are a mix of residential, commercial, and even retail spaces within one property, such as a building with shops on the ground floor and apartments above.

Renovation projects such as

• Converting old or unused buildings (e.g., converting warehouses into residential flats)
• Redeveloping properties that need major upgrades

When you apply for a property development loan with Blue Square Capital, we will ask for a number of documents. These include:

• Previous company bank statements
• Previous personal bank statements
• Details of costs and financials
• Details of exit strategy
• Property valuation

On top of this, we will also want to understand how you plan to repay the loan within the 15 month period.

Examples of common exit strategies include:

• Sale of the developed property
• Presale of properties due to be developed
• Refinancing into a long-term loan such as a commercial mortgage or buy-to-let mortgage
• Renting out the property and using the capital to pay off the remainder of the loan
• Selling other assets to release funds

At Blue Square Capital, we release all of the funds at the start of the project, to ensure our borrowers have the capital they need from day one.

We understand that property development projects may not always go to plan, and you might need funds earlier than expected.

Our team work quickly, aiming to release the funds within 2 weeks. This means that you can focus more on completing the project and less about managing the drawdowns.

Whilst our head office is in London, we offer property development loans all over England and Wales.

Our clients operate all over the country, including in major cities like London, Birmingham, Manchester, Liverpool, Leeds, Bristol, Sheffield, Newcastle, Nottingham, Leicester, Coventry, Cardiff, Swansea, Newport, Southampton, Portsmouth, Derby, Stoke-on-Trent, Wolverhampton, Plymouth, Exeter, Oxford, Cambridge, York, Luton, Sunderland, and Durham.

Whilst our loans come with 15 month repayment terms, we understand that property projects can take unexpected turns.

At Blue Square Capital, we don’t charge early exit fees. This means that if you sell the property and pay back the loan early, you won’t be penalised.

What Other Fees Do Blue Square Capital Charge?

We charge a few extra fees on top of the loan interest. These include:

• Arrangement fees (2% of loan amount)
• Bank transfer fee (£25)
• Admin fee (£999)
• Valuation and survey fees (depends on property)
• Solicitor fees (depends on project)
• Exit fees (n/a)

How Quickly Will My Property Development Loan Be Approved?

Our team aim to prove indicative turn within 24 hours. If we are missing any information that we might need to make a decision, a member of the team will be in touch to request these.

Generally however, we aim to get funds to our clients within 2 weeks. We ask that all documents are presented during the initial application process to ensure we have all the information that we need to make a quick decision.

What If I Need To Extend My Property Development Loan?

Our loans need to be repaid within 15 months. If you think your exit strategy might take a bit longer to come to fruition, we recommend refinancing to avoid any penalties.

What Is The Typical Interest Rate For Development Finance Loans With Blue Square Capital?

The interest rates on our loans start at 0.95%, however this rate is evaluated on a case-by-case basis depending on the project.