![]() In addition to paying your own fees, development lenders will require you to cover any legal costs they incur with regards to your application. Legal fees: A solicitor may need to complete the legal aspect of your loan application.Whilst the majority of lenders will only charge interest on the funds you have received, some will also charge it on the funds you haven’t yet drawn. Rates will typically be variable, and priced as a margin over SOFR (Secured Overnight Financing Rate), although this will also be dependent on what currency you are borrowing in. Interest rate : The interest rate varies for each lender and is usually rolled up.As a guide the fee for a Development Appraisal will be circa 0.1% - 0.15% of the GDV. Valuation fee : A valuation will need to be carried out by a surveyor to ascertain the current Market Value of the site “As-Is”, and to provide a projected Gross Development Value “On Completion”.Since it is added to the loan facility, interest will also be charged on the arrangement fee. Lenders normally only charge their arrangement fee if the loan is drawn down.In most cases this fee is added onto the loan facility, enabling it to be paid when the loan is repaid. Arrangement/Facility fees : Development finance arrangement fees are typically between 1% and 2% of the net, or gross, loan amount and are charged by the lender for setting up the loan.Application fees : You may be charged an up-front application fee by the lender or broker for submitting the initial application.A schedule of the works to be carried out, including:.○ Agreed contracts, Labour and materials,.A detailed breakdown of build costs, including:.Specifics relating to subcontractors such as architects, planners, and builders, including their experience and past projects.Demonstration of development and market knowledge and experience gained.Challenges previously experienced in this type of development, key risks and threats, and how they were overcome.Details of the developer and/or key contractor's property development experience, including successful projects and projects that may not have been a success.Planning permission documents and approvals, approved plans, zoning or compliance with development plan, including any restrictions, conditions, or obligations.Projected internal floor areas of the differing elements, along with the original design brief from the client and how it has been met with the design. ![]() Architect's summary presentation of the project, including renderings of the finished property and a written summary of what the completed project will be.Site description, location, and area analysis, with supporting As-Is Market Value of lot or existing property.Purchase agreement and price, or legal ownership documents, including lot plan for the land.
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