If you want to get your property development financed you could go on the Internet to websites like http://www.euroguide.org/property-development-finance and list all of the lenders that offer this specialized type of funding. After you have gathered the names of all the lenders that provide this funding you will need to fill out online applications detailing the property being financed and your own financial situation. The first thing the lender wants to look at is the value of the property being developed. Since real estate prices fluctuate the lender is going to require an appraisal to determine what the property is currently worth in the market. You will need to find out which appraisal companies your lender works with and contact one of them to come over and look at the property, the costs of this appraisal will be paid by you.
When the appraisal has been completed and the value of the property established the lender will fund up to eighty percent of the property value, the remaining twenty percent will need to be furnished by you. This additional twenty percent is just for the purchase of the property you will still need to service the debt. One way to come up with this twenty percent is to either save the money from your own efforts or reach out to potential investors who can pool their money along with yours and secure the mortgage. This is one of the more popular ways to come up with the required down-payment and in some cases if you are persuasive you could get enough investors to pool their money there would be no need for a mortgage.
After the financing has been put in place the next step is to look at your income documents, how will you service the loan ? If it is a rental property development you will need to establish the anticipated rental income by using comparable properties in the area, a real estate agent could help you create this list of comparable rentals. If you are financing the property development solely from your own resources then the lender will need to look at your employment letter and salary slip to verify your current income. Once all of these steps have been addressed the lender will provide the funding needed to help with the property development just be sure you are not taking on more debt than what you can comfortably handle or you could end up regretting it down the road.
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