Property and Development Finance
Understand the measures and facilities used for commercial property, short-term property lending and development projects, including the importance of a credible repayment exit.
- Bridging Loan
A bridging loan is short-term borrowing designed to cover a temporary funding gap, commonly secured on property and repaid through a defined exit.
- Commercial Mortgage
A commercial mortgage is borrowing secured on commercial property, commonly used to acquire or refinance premises or investment property.
- Development Finance
Development finance is funding for a property construction or substantial development project, usually structured around project costs, staged advances and a repayment exit.
- Exit Strategy
An exit strategy in short-term or property finance is the evidenced plan for repaying the facility by its contractual end date.
- Gross Development Value
Gross development value is an estimate of the total value of a development once completed, usually before deducting development costs and finance.
- Loan to Cost
Loan to cost is the amount of development or project borrowing expressed as a percentage of the costs included in the lender’s stated calculation.
- Loan-to-Value
Loan-to-value is the amount of a loan expressed as a percentage of the value assigned to the asset securing it.
- Retained Interest
Retained interest is interest reserved or deducted from a facility at the outset to cover an agreed period, rather than paid separately each month.