Commercial Finance and Insurance

Property development


Property, both residential and commercial, is a popular business opportunity for both developers and investors.  It’s important to realize the distinction between ‘development’ and ‘investment’ as the method of financing activity can vary considerably.

Property ‘development’ is when a ‘property developer’ undertakes a project to build, or refurbish, residential or commercial properties for rental or for sale.  The return the developer receives comes when the houses, offices or commercial units are sold or let.  Property ‘investment’ is when an ‘investor’ buys one or more residential or commercial properties, usually for rental but sometimes for resale.  Having bought the property, the investor’s return is either the ongoing income fromrenting it or the profit from selling it.

It’s often said that success in both property development and property investment comes down to ‘location, location, location’.  It’s a maxim that means different things to different projects in different areas.The most basic question is, is it actually needed?  If it’s a new development, will it be sold or let, or will it become an expensive white elephant with the developer unable to repay the loan.  If it’s an existing property, either residential or commercial, is it in a desirable location?  Will the rental income cover the hefty interest charges, fees and the property investor’s profit expectations?

It is these questions that successful property developers and investors give careful thought to as, apart from making it difficult to get finance, it can result in financial disaster.

Property development finance

Property development finance provides the money needed for either new-build or restoration / renovation projects, be they residential, commercial or mixed-use.  It covers everything from building a single new house on a small plot of land to building a multi-unit industrial park; from luxury homes to supermarkets; from converting a house into a shop or an office block into flats.  Lenders view residential and commercial property development opportunities differently.

  • Residential property
    Driven by the demand for housing, most lenders are prepared to fund residential property development schemes.  Despite this, caution dictates that most favour developers who have a proven track record and, even then,they tend to lend using restrictive terms and conditions.
  • Commercial property
    Without the same level of demand,lenders are more cautious about financing commercial or, even, mixed-use developments.  In addition, although housing stock is designed to be used for many generations, commercial property can become obsolete very quickly, either due to market changes or to increased running costs.  It can be more difficult to secure funding for commercial or mixed-use developments and developers will invariably need a good track recordin commercial property development.

Refurbishment and renovation finance

Frequently, properties, both residential and commercial, will need to be renovated or refurbished before they can be used, sold or let. 

  • Refurbishment with the intention of retaining ownership
    Sometimes called ‘refurb to term’, this scenario involves a developer buying a property to refurbish or renovate but intends to retain ownership of it, most usually renting it to tenants, once the work is complete.
  • Refurbishment with the intention of selling
    Also known as ‘tart and turn’, this scenario involves a developer buying a property to refurbish or renovate but with the intention of selling it once the work is complete.

The two scenarios, although seemingly very similar, dictate different approaches to funding due to the borrower’s ultimate intention: in the first instance, the developer is intending to retain the property whereas in the second, it is to be sold.


How can One Financial Solutions help you?

One Financial Solutions is here to help you.  We’ll talk to you about what you need and then introduce you to a specialist commercial finance broker who will work with you to secure a financial solution.

The commercial finance brokers we work with are acknowledged experts within the industry and have enviable relationships with a wide range of financial institutions throughout the whole of the market.  They offer a complete service and can provide practical advice on all aspects of commercial finance.  They can secure working capital, venture funding, development finance, bridging loans and asset-based finance schemes; help with business purchases and sales, including management buy-outs and buy-ins, and advise and assist with all aspects of share capital, proprietor loans, vendor deferment and mezzanine finance.  They can also provide a lead role in liaising with all parties in these transactions including the financial institutions involved, accountants, specialized valuers and lawyers, and can write business plans, balance sheets, profit and loss statements and cash flow forecasts to support the proposal.

So, if you’re looking for help securing any type of commercial finance, please call us on 020 3714 9565, or ask us to call you by sending an email to


Residential Development Finance

Residential Development Finance

Many of the High Street lenders will only fund on very restrictive terms to experienced developers with an established track record. Bespoke Business Finance works closely with a number of lenders who have an appetite to support good schemes and we deliver the solution for our clients.

Residential Development Finance is supported by:

  • High St Banks
  • Specialist Property Development Lenders
  • Mezzanine Providers

We have funded projects for first time developers We can obtain 100% of build costs, where land is already owned or has low gearing.

Commercial Development Finance

The recent challenges within the property market have resulted in most lenders having very limited appetite to support transactions where there is a large commercial element within a particular construction project.

However, there is now a desire to support schemes where end tenants can be secured at the outset or where a pre-sale can be similarly demonstrated.
Commercial Development Finance is supported by:

  • High St Banks
  • Specialist Property Banks
  • Building Societies

Bespoke Business Finance can help you to find the best solution for your funding needs, click here for more information or to arrange a meeting.

Property Refurbishment / Renovation Finance

For client’s looking to acquire residential or semi-commercial property in need of refurbishment then Bespoke Business Finance have access to a range of solutions to suit your circumstances

Refurbishment with the intention to sell, a.k.a. the ‘tart and turn’
Funding can be secured to assist in projects where the intention is to sell at the completion of the works. Examples of such instances are below

  • Properties unsuitable for occupation
  • Properties in need of modernisation
  • Commercial property to be converted under Permitted Development Rights
  • The plan is to reconfigure the layout of the property

Refurbishment finance can just be secured against the asset leaving the client free to fund the project costs without any significant lender interference. Typically funding can be sourced up to 75% of the initial value in this scenario.
If, however, finance is required to support both the acquisition and subsequent works then Bespoke can again provide the solution. Whilst this provides a higher sum of funding it will come within a more rubust framework to protect the additional debt. Typically lending in this situation can be extended to 70% of purchase price and 100% of the cost of works.
Refurbishment with the intention to retain ownership a.k.a. the ‘refurb to term’
Bespoke Business Finance can also help should a client have the intention of retaining ownership of the property once the renovation works are complete.
We are able to source a debt facility that provides the refurbishment finance as described above but with the addition of a guaranteed long term loan that can be drawn at completion of the project.
The term loan can be agreed up to 75% of the uplifted value enabling the client access to the added equity without the restrictions that normal buy to let lenders have on newly created property.