Property Development

Property development finance can be used for a variety of purposes including new build residential or commercial property schemes, expansion of existing properties or conversion of an existing property for residential use.

There are various types of development finance options available to developers based on their specific needs and project requirements. These are usually advanced in stages as the build progresses with ultimate repayment from the sale or refinance of the properties. Options include:

Senior Debt

This is the most common form of financing, where a lender typically provides funds up to 80% of costs or 65% of the project’s gross development value (GDV).

Most lenders require the client to have direct development experience but there are lenders who will consider first time developers.

Stretched Senior Debt / Mezzanine Finance

This form of financing fills the gap between senior debt and equity and can be provided by one lender in the case of stretched senior debt typically up to 90% of project costs or 75% of GDV or in the case of mezzanine finance a separate lender who provides a facility alongside the senior debt funder.

Both tend to carry higher interest rates and fees and are for experienced developers only. Whilst more expensive, this finance can allow developers to spread their capital across a higher number of projects.

Equity Financing

In this type, investors provide capital in exchange for ownership or shares in the development project.

Equity finance is often sought for higher-risk projects, offering potential returns upon the project’s successful completion.

Reviews

I have found Red Sky great to deal with. They are knowledgeable, professional and have been able to accommodate our requirements with what has seemed like ease.

James Brecknock

11:38 18 Mar 21

Excellent service, I was impressed by Andy's understanding of our business after a few phones calls and emails, very professional, highly recommend, thanks again

Martin Webster

06:00 21 Feb 21

Outstanding partner to our business, supporting and enabling growth in a simple, pragmatic manner. Highly recommend.

Simon Bollon

10:17 18 Dec 20

I suggest stop looking at your typical high street banks and try Paul straight away. Saved me lots of hassle and head ache and manage to get me a loan middle on the pandemic and 2% cheaper to the closest competition. His not your typical 9 to 5 office worker sometimes we were exchanging emails at 9pm he was always available to talk and not once we felt he wasn’t the right guys.

Seyed Sarparast (Sami Kolak)

12:53 17 Dec 20

Paul at RedSky provided an excellent and friendly service to source and successfully apply for a loan for my client. Despite originally being refused a loan by their high street bank Paul managed to get us an acceptable alternative at good rates. - I would not hesitate to recommend Paul and his team to anyone looking for funding.

Steve Gordon

16:08 05 Nov 20

From the start of the process Andy was fantastic in arranging finance for our business. He kept me updated with progress all the way through keeping the stress levels to a minimum, even when he was on a weeks holiday. I wouldn't hesitate to use their services in the future.

David Brooke

09:08 21 Sep 20

Fantastic service from the minute we spoke to Martin Bell - personable pragmatic and he managed to get a great deal on our business development finance - wouldn’t hesitate to use again or recommend to others

Emma Sayner

17:31 24 Aug 20

Martin was exemplary throughout the process of putting in place funding for our business. Everything was seamless and transparent, which is exactly what we wanted. Thank you!

Matthew

13:04 14 Aug 20

Peter was very helpful throughout the CBILS process. We faced a number of issues but he was always there to support us and point us in the right direction.

Steve H

16:08 20 Jul 20

Andy from RedSky has been amazing, help throughout the process. Very highly recommended

Alan Talib

12:08 29 Jun 20

Fantastic to deal with and helped us achieve what we wanted at a very busy time.

Danny Bullement

16:14 02 Jun 20

Myself and my husband have been supported by RedSky for over 15 years in our Hi-tech engineering business and we simply couldn't recommend them enough. They will always go the extra mile and beyond and will only find a solution that is totally right for your business, never simply for their gain. Integrity is absolutely paramount for them. They are able to look at the whole of the market for your business solution and are at the forefront of everything that is happening in the business funding world and solutions for SMEs. They really do care about your business.

Claire Summerskill

11:35 30 Jan 20

I have known Martin from Red Sky for a number of years and has been great to work with and obtain the results that we needed. Would highly recommend.

David Grabowski

11:10 26 Nov 19

Have worked with the Red Sky team for many years. Very professional and thorough approach. Always provide honest and constructive advice. Wouldn't hesitate to recommend their services.

Ian Atkinson

10:56 19 Aug 19

very efficient service easy to talk to and kept informed all the way along great service

Dick Lambert

10:45 15 May 18

Fast, efficient and helpful. Would highly recommend!

Lynne Hockney

11:28 12 Apr 18

Gareth at Red Sky understood my business and my funding requirements quickly, he was a pleasure to work with and secured the funding I required. I highly recommend Gareth and Red Sky. If the need arose I would turn to Gareth and Red Sky without hesitation

India Mahon

12:11 17 Mar 18

Fantastic service, quick & efficient 1st class service & always on the end of the phone. Definitely recommend!!

Sue Robinson

10:50 02 Feb 18

Without Redsky our business wouldn’t of even got off the ground. Gareth was fantastic in putting our business plan together and doing all the paperwork. We can’t thank you all enough hopefully you can change our life’s. Thank you

Jamie Orr

14:12 31 Jan 18

‹

›