Saffron Building Society has launched a new, smaller development finance loan for customers requiring an advance of between £150,000 and £500,000 to build or renovate a property to sell on the open market. The ‘Smaller Development Loan’, adding to Saffron’s established products financing larger projects of £500,000+, is supported by a team of relationship managers offering expert guidance for customers.
This latest offering from Saffron provides residential property loans designed specifically for experienced individuals and housebuilders working on small development projects throughout England and Wales. Saffron will lend primarily for new builds and conversions but will in some circumstances also consider funding projects which are part completed and which require additional funding to complete the project.
Saffron’s Smaller Development Loans can be used for:
Residential only: New build flats and houses
Conversions: (including barns), renovations & extensions
Part completed sites
- Funding between £150,000 and £500,000
- Leverage at the lower of 75% of project costs and 65% of GDV (maximum day one advance 65% of purchase price)
- Interest rates typically start from 1% per month
- Arrangement fee 2%
- Exit fees 1%
- Fixed legal costs typically £1,200 for a single titled property
- Quantity Surveyor (QS) fees do not apply – Saffron’s internal QS monitors all sites so there are no external monitoring fees
- Monitoring costs £100 per visit plus out of pocket expenses
- When lending to limited companies, personal guarantees will be required.
Each customer taking out a development finance loan will be supported by a dedicated relationship manager throughout the build. This unique, customer support team includes newly appointed ‘Solo Baleisolomone’ who brings experience as a qualified quantity surveyor to his role, a particular benefit to those working on their first development project.
Peter Owen, Head of Property Development at Saffron Building Society said: “Our customers like the fact that we take a personal interest in their projects and provide ongoing advice, guidance and support throughout the complete development process. We don’t just lend and walk away, we are dedicated to the project and we visit the site to ensure we support our customers as the project progresses. We offer regular assistance wherever possible to enable them to overcome potential issues, such as unavoidable cost and time overruns.
Many of our customers stay with us and ask for support on subsequent projects – it becomes a partnership. For us, it’s not just about finance. It’s about lending our years of experience to help our customers achieve a successful outcome.”
More information about Saffron Building Society’s Development Finance services can be obtained by contacting: 01799 582886 or email Development.Finance@saffronbs.co.uk