Hank Zarihs Associates | Development finance calculator


Select Property Type

Property Price

£ 1000 £ 100,000,000

Term (Month)

01 Month 60 Months

Manual Calculation

LTV (%)

1% 100%

Rate (%)

1% 100%

Lender Fee (%)

1% 2%

Exit Fee (%)

1% 100%

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If you’re a developer, you’ll likely have noticed the explosion in popularity of property development over recent years as the market has had a remarkable run where prices have risen sharply as well as demand for new build properties and renovated property.

With the government’s Help-To-Buy scheme recently re-launched and the stamp duty holiday that was introduced last year, home buying has become enormously popular once again.

Given that over the coming years it’s expected that rents, house prices and overall demand could soar it’s likely that the market will get more competitive over that period, with many now looking at land opportunities and chances to build housing.

Hank Zarihs Associates | Development finance calculatorFor experienced investors they know where to find and source these types of land but so often the biggest hurdle presented is acquiring a loan quickly and efficiently to allow them to move forward and get spades in the ground. We’ve included our calculator below to give you a brief idea of what to expect if you’re looking for a bridging loan but our team of experienced brokers can give you a more in depth overview of what will be required and what you may need for an application. We’re specialists in arranging these types of loans so you can be confident we’ll ensure your application is in the best shape to be accepted and funded as quickly as possible.

In the current climate investors know that to be able to seize the best opportunities they’ll often need development finance or a loan in order to buy the best land or grasp the best deals at often short notice.

With the amount of profit that’s available to be made by development, it’s no surprise that we’ve seen a big rise in demand for development finance, so if you’re thinking about a loan or finance for your development here’s a good place to start.

We’ve put together a development finance calculator for you to allow you to get a rough idea of the finance or loan that you have in mind. Development finance can sometimes appear complex but we’re here to make it as simple as possible for you and to point you in the right direction.

How to use the Hank Zarihs Associates development finance calculator

Our loan calculator is specially designed to give you a good idea of the cost and rates that you could qualify for with development finance or a loan.

When you’re looking start a development and get the ball rolling one of the most stressful parts can be approaching lenders or finance companies to discuss development finance, but we’re here to give you an initial idea of the costs of the loan, and our team of experts are able to talk you through the process.

To use the calculator, firstly, you’ll need to input which type of property you intend to purchase whether that’s, for example, a residential property or a commercial property.

Secondly enter the anticipated purchase price of the property. This doesn’t have to be 100% accurate. Finally, just enter the number of months you think you’ll need the finance for.

For our manual calculator you’ll need to enter the same details again but also enter the Loan To Value (LTV), Rate in %, Lender fee in % and the Exit fee in % and this will give you an accurate read-out of what your finance will cost if you already know the terms you’re seeking.

Our brokers can get you the most affordable development finance rates

When you’re looking for development finance it can be a little overwhelming and the thought of having to approach a large number of loan or finance providers to get quotes or advice can be laborious and time consuming which is why we’re here to provide you with the information and advice you need.

Our calculator is one aspect of us giving you the tools you need to make the best decision of your finance.

Our experienced and talented brokers are specially trained to be able to understand your development and your requirements so that we can get you the most affordable development finance rates around.

We’re able to do that because we know what our panel of development finance lenders need to be able to approve your loan application, and because we have long established relationships with some of the biggest lenders in the industry who lend millions in finance per year. Because of our exclusive relationship with these lenders we’re also able to negotiate the best loan rates and get exclusive offers for our clients.

In terms of typical rates for your finance or loan, you can expect to pay between 0.45% and 0.75% per month with a lender fee of 1% – 2% of the value of the loan.

Fees and costs

These will vary between lenders and will depend on the type of loan, finance or development finance you’re seeking. There are typical costs that you can consider, such as the monthly interest, the arrangement fee and the exit fee.

Most lenders will treat these types of projects on their individual merits and so these costs can vary depending on certain criteria such as your Gross Development Value (GDV), the timescales involved, your personal credit history and also the team you have with you. Some may also ask you for a business plan to show that you’ve got all the necessary details and plans in place to be able to successfully complete your project, however, our team of brokers are in the perfect position to be able to advise you on this and set your expectations accordingly.

For experienced investors they’ll have a good idea of what types of fees and costs to expect, but again it’s worth reaching out to us as we have a diverse panel of lenders that may be able to offer competitive rates. Due to our exclusive relationships we’re confident we can get you the best deal available on the market.

Typically, it’s reasonable to assume you’ll pay between 0.45% and 0.75% in monthly interest, an arrangement fee of 1-2% and an exit fee of about 1% too.

Can I get a Mezzanine loan if I have a development finance loan?

Mezzanine loans are fairly complex finance arrangements in and of themselves so primarily we’d advise you to speak to an experienced broker firstly so that you’re aware of the terms of this type of loan.

A mezzanine loan is a type of loan where the developer typically puts 10% of the funds up front, the bank lends between 60% to 80% and a specialist mezzanine lender will fund the remainder. In a property development situation, you’d expect the bank or lender to offer a loan that would cover part of the costs of the purchasing of the land, the building work and the professional costs. The mezzanine would then be in place to offer finance from the very start.

In terms of securing development finance and a mezzanine loan too, this will depend on the lender, but these are fairly common arrangements. Things that will be considered, for example, will be the project and its GDV (Gross Development Value), your track record, your credit and your team.

It’s advisable when arranging these types of loan and finance arrangements to speak to an experienced broker who can understand your development in greater detail.

What makes a bridging loan a great financing option?

When you’re looking to apply for development finance or a loan it’s sometimes difficult to know which the best option is. Our finance calculator can help give you a better idea of the costs and rates involved, but by and large development finance can often be categorised as bridging finance.

A bridging loan is a quick, cost-effective way for tor developers to get projects started or get them moving more quickly.

If you’ve got a good record of success then there’s a good chance you will be approved for bridging finance, however, it’s easier to talk to a specialist broker who can give you some information about the finance or loan that could be available to you.

Because a bridging loan is designed to be a short-term solution the interest tends to be quite reasonable, with a small arrangement and exit fee often due as well.

One of the most attractive benefits of this type of development finance and loan is that it can be arranged extremely quickly, depending on your circumstances. Development finance secured through a bridging loan can be confirmed and accepted with funds released within 24 hours, however, this will depend on your circumstances.

Because a bridging loan is also an extremely flexible form of development finance, it often means that the requirements and financial terms aren’t as strict as other types of finance. Your credit history isn’t as important as you’d imagine, and our expert brokers know exactly what our panel of lenders wants to be able to approve your loan.

If you’ve building a development site, the lender will often want to know what the value of the build is as they’ll likely want it as some form of security to agree your development finance.

To get a better idea of what fees and interest rates could look like simply use your finance calculator.

Speak to our finance brokers

If you’re looking for development finance, then the best advice is to get in touch with one of your experienced brokers who can talk you through your financial options.

Our brokers have years of experience in development finance and especially with bridging loans for shorter term lending. Through our network of connections built over years we have exclusive access to a number of lenders who can offer our clients special rates.

Due to our brokers having an excellent knowledge of the industry they’re able to get a good idea of what our clients are looking for and what will be required of them from our panel of lenders. They will get your application in the best possible shape before submitting it, and through our relationships they will ensure they find you the best possible rates for you.

Because we have huge experience working with our current panel of lenders, we’re able to ensure that your application is worked, submitted and accepted in the quickest time available. We understand that for our clients in the property and development industry speed is often paramount and so we focus on getting things done quickly for you.

Often the process of acquiring or applying for development finance can be the most stressful part of any project as it can mean researching, contacting and applying to a number of lenders which can mean losing precious time when you’re looking to get your project moving. Because our brokers have instant access to all the leading companies in the industry, we can ensure you’re not wasting time on a lengthy application process.

We’ve included our finance calculator above to give you an idea of costs before going through the application process but our brokers are in the best position to talk you through what the process involves and the best way to move forward, so it makes sense to get in touch today.


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