Commercial Property Development Finance: The Complete Guide

Put simply, commercial property development finance is a type of loan to cover the cost of purchasing or developing a commercial property. If you’re a developer or business owner, you can also use commercial property development finance to help you expand or relocate your business or make improvements to your property.

Commercial Property Development Finance is available for:

• Offices
• Retail units
• Warehouses and factories
• Hospitals and medical centres
• Care and nursing homes
• Dental surgeries
• Hotels
• Pubs and restaurants
• Garages and workshops

It’s also worth mentioning that most commercial property development finance loans are secured against the land or property being purchased or developed.

Do I Need Commercial Property Development Finance?

You may need to use commercial property development finance to buy a new property because you’ve outgrown your current premises or you might require finance on a ground-up development project. It could be that you want to extend your existing property to increase the available space or you need short-term finance for renovations and refurbishments.

What are my Options?

• Commercial Mortgages: You can use a commercial mortgage to purchase a commercial property, such as an office building or retail units.
• Semi-Commercial Mortgages: Appeals if you want to purchase a property with residential and commercial uses.
• Bridging Finance: A short-term loan ideal if you need quick access to funds to purchase a property or complete building works.
• Mezzanine Finance: "Top up" funding for large commercial development projects that bridges the gap between your equity and the main lender.
• Auction Finance: Allows you to arrange funding in advance for property auctions.

Do I Qualify?

Commercial property development lenders like to see a good credit history and usually ask for:

• Detailed build costs
• Purchase price or value of the site
• Any current debt on the site
• Development appraisal
• Planning consent
• Your CV

Here at Provide, we match you with lenders that fit your requirements to save you the time and hassle of doing it yourself.