Development Finance

West One only offers Senior Development Finance (1st charge) up to 65% LTDGV and 85% LTC, however we will consider applications where Mezzanine Finance is being used.

When a developer lacks sufficient cash to cover project costs which aren’t covered by the Senior Finance, they could seek Mezzanine Finance which is a loan secured via 2nd charge.

Mezzanine Finance can take a client’s contribution from 15% of project costs down to 10% of project costs as they typically fund up to 75% LTGDV and 90% LTC.
As there is a higher level of risk associated with this type of lending, rates on Mezzanine Finance typically can start at 12%. 

• Details of the scheme
• Development appraisal breakdown (i.e. build costs, contingency, professional fees, CIL/S106 & any other development costs)
• CV detailing past experience
• Full security address
• Purchase Price/Market Value
• Schedule of accommodation / GIA
• Planning Status
• Plans/drawings if available

If you are a broker with an existing relationship with a member of the Development Finance team please use their contact details otherwise, you can contact the team using the below details.

Phone - 0333 123 4556

Email – Developmentfinance@westoneloans.co.uk

All West One Development Facilities are funded in Arrears.

Following the facility set up, the initial works on site must be funded by the developer.

In the following month, the West One appointed Independent Monitoring Surveyor (IMS) will visit the site to assess the works which has been completed along with all the relevant paperwork provided by the developer/contractor.

The IMS will then provide a report to West One, certifying the amount which they believe should be release against the works carried out by the developer/contractor to date.

This is typically done monthly until the scheme has been fully developed.

With our facilities being Rolled up Interest, the developer does not have to worry about paying interest monthly and can concentrate their cashflow on progressing the development.

Interest is also only applied to the parts of the loan which have been drawn to date, meaning that if the developer completes the project only using a portion of the loan, they only get charged interest on that portion.

You must have successfully completed a minimum of 2 developments similar to the proposed scheme.

No – we will only complete a loan on the condition that full planning has been granted.