It’s likely that there will come a time when you want to develop or completely refurbish your current property. It might be that you are running out of space and the home that you thought would be yours until your retirement years is now no longer fit for purpose and the kids are crying out for more space. You have two options here and one of them is to sell your current property and move to a different area and into a larger property. This is generally not an option that many people take because they picked this particular house because of its location and the fact that it was close to good schools and good shopping areas. The option open to you now is to take out some kind of development finance and the good news is that it is available for all different sizes of development projects.
You might only want to borrow a few thousand pounds to add an extension onto your current property or that might go into many thousands of pounds depending on the overall size of the building project. You can find information here at www.ascotbridgingfinance.co.uk with regard to development finance and you can talk to them about what you think is the estimated market value of your property once you have made the necessary changes. Depending on the size of the building project that you are taking on, they will release all of the money to you at one time or if it is a particularly large project then the money will come in stages as the whole development progresses. The following are some of the advantages of this kind of finance.
- Quick access to finance – The beauty about development finance is that it can be usually arranged quite quickly and it is definitely a lot faster than what you had to experience when you first got a mortgage to buy your property in the first place.
- Short repayment periods – Unlike a mortgage where you are paying back the money for the next 25 to 35 years, development finance loans are typically paid back over a two-year period. This means that you won’t have this kind of debt hanging over your head for a long period of time.
- Affordable interest rates – The rates for development finance are not that high and if you are a person who has undertaken a number of developments before then you may be able to get lower rates than others.
- Available for many projects – Development finance is not just restricted to residential properties and you can get it for your commercial premises and on any newly built properties as well. There is no need for you to have to pay any money upfront like you would if you were applying for a mortgage and this helps to improve your overall cash flow position. Click here for more information about business development.
This type of finance is usually provided to you on an interest only basis and that means that you pay back the original sum that you borrowed and all of the interest in one lump sum at the end of the agreed term.