Commercial property development is an extremely unique industry. They are completely different from residential properties as commercial work is on a much larger scale, meaning there are higher risks and more complex technical difficulties.
Top 3 tips to begin in commercial property development
This is perfect for those that don’t have funding in place, but are keen to commence development on a commercial premise.
Development finance is often used to fund property renovations and refurbishments, meaning the amount you can borrow vary massively. Click here for advice on property development.
The amount you need to borrow will depend on various things:
- Overall value of property once developed
- Estimated build costs
This is a very unique type of finance and is most often used for when people need to build a property from scratch. Only 10% of UK homes are classified as ‘self-build’.
However, the property in question tends to be their primary place of residence, insinuating that a self build loan is normally considered a mortgage contract.
This is similar to ‘development finance’. However, most lenders will offer more bespoke terms, especially for those seeking short term work instead of a large scale development. See more information.
The true decider on the type of finance is dependent on the length of time that it takes for the project to be complete.