The thing that sets property development finance apart from other more traditional forms of finance is the fact that until the property has actually been designed and constructed, it may have very little value. The land the property is to be built upon will have some residual value, but will not cover the cost of repaying the full loan amount if it remains an empty piece of land.
For this reason, commercial finance lenders are extremely cautious when considering loan applications to finance new developments because the risks involved can far outweigh the potential gains and there is no guarantee that they will get their money back. Due to this increased risk, lender will usually apply a higher rate of interest to property development finance than they would for a typical residential mortgage.
A property developer can usually get 100% development finance both for large scale property development and renovations. For 100% development finance in
