Types of Financial Services Offered
Everything you need to get finance for your project
Whether you require standard structural defects insurance for a residential or commercial building, or something more bespoke like a conversion or custom build, we’ll do our best to adapt our ABC+ Warranty to suit your needs and provide protection. We offer a range of policy types for property developers at ABC+ Warranty.
Surveys that matter the most
As one of the UK’s leading warranty providers, we understand how challenging and stressful a construction project can be, which is why we’re always on hand to help.
Thanks to our years of experience in the construction industry and our fantastic customer service, we’ve built up a portfolio of high-quality technical inspectors familiar with local authority building control regulations, who can help facilitate surveys and inspections for your development projects to make sure everything is running smoothly.
By choosing an ABC+ 10-year structural building warranty (also known as latent defects insurance), you’ll benefit from:
If you have already applied for building regulations approval from your local authority, we can arrange for a schedule of technical audits to be conducted during your residential development project, alongside the local authority’s building control inspector.
Frequently Asked Questions
All you need to know to make the right decision
Sometimes known as sales period loans, developer exit finance, or finish and exit finance, this type of development financing helps developers to refinance and continue their projects when they have run out of either funds or time to complete their plans.
When the development is nearing completion, development exit finance can help to repay existing loans with another, smaller loan – as the project is almost finished, there is less risk for the lender, so the loan should be available with a lower rate. Like a bridging loan, these funds can be used to settle outstanding costs, release equity, or borrow more to advance to another development.
These are short-term loans that are usually repaid within 12 months or less, often with reduced interest and without exit fees for paying early, helping to improve cashflow.
Development exit loans will be based on the current value of the part-completed project, and applications will require updated details on current loans, the schedule of remaining works, and details of marketing and exit strategies.
Our team could help you find the right development exit finance for your project – contact ABC+ Architects Certificate to make an enquiry.
While development finance offers a larger source of funding for the entire project, it can be more expensive – so switching to development exit finance offers a cheaper alternative when the bulk of the project has already been completed.
Whether the project has run over budget or schedule or the original loan term is about to expire, developer exit finance can be beneficial in extending the sales period to allow you to finish the project to the most marketable standard and secure the best possible sales price – and some lenders allow developers to retain a portion of the first sale proceeds to help with cashflow management.
Additionally, if current finance costs are too high, development exit finance provides a way to reduce borrowing costs with lower rates, which helps to protect your margins when sales are slow. It also provides a route to release capital that allows you to move on to your next development before the current project is completed and sold, so you can stay on schedule as closely as possible.
After all, construction projects do not always go to plan, and developers may find themselves needing a quick finance solution to stay on track. If this applies to you, get in touch with ABC+ Architects Certificate to discuss exit finance options today.
The eligibility criteria for developer exit loans can vary depending on the type of property, client, and project circumstances. Generally, any individual, partnership, limited company, offshore company, or trust can apply for development exit finance.
You do not need to be an experienced developer to apply, but lenders will take into account the amount you want to borrow, the development type and location, and the reasons for needing exit finance. You will be expected to provide details of the:
- Borrower – whether it is an individual or company (including directors and shareholders)
- Security – the value and nature of the security being provided
- Schedule – breaking down the outstanding works and costs
- Documentation – e.g. planning permission, warranties, practical completion certificates
- Current finance – terms and conditions of existing development finance
Usually, properties in progress must have been completed at least to the stage of being wind and watertight to be accepted.
Every development project differs, but if you want to secure a development exit loan as an exit strategy for current financing and to boost your project funds, you can reach out to us at ABC+ Architects Certificate. We can help you decide which development exit finance option is best for your particular situation and assist with the application to achieve a swift solution.
This type of financing is designed specifically to fund property development projects, and can be used for various types – whether it’s partial or full funding for a small or large scale development, involving construction, refurbishment, or conversion of new or existing buildings.
Developer finance is usually provided as a short-term loan released in stages as the development project progresses, ensuring the funds are available when the developer needs them, so they can complete the project efficiently. Once all work is finished, the loan is typically repaid through the sale of the property or refinancing with a longer-term agreement, like a commercial mortgage.
How long it takes to apply for development finance and how much a developer can borrow depends on factors such as the value of the property, the development costs and timescale, its expected end value, previous experience, and exit strategy for repayment. If all documents are in order and a valuation can be carried out quickly, the process should be streamlined.
Talk to us at ABC+ Architects Certificate to learn more about how development finance works.
As the name implies, development financing can only be used to finance developments – it must be used specifically for the property development costs applied for, such as land or property purchase, construction material and labour costs, infrastructure services, etc.
Developer finance can generally be raised against most types of property development, including commercial, residential, and mixed-use. Properties can be new build or renovations, for sale or for rent – but definitions of refurbishment may vary from one lender to another, with different limits available for heavier renovation.
Traditional development finance requires standard construction methods, like brick-and-block or steel and timber frames, but alternative construction methods like MMC (Modern Methods of Construction) – such as modular housing – may be considered.
Contact us for more information on how you can use development finance with us at ABC+.
Though they obviously sound similar, development finance and development exit finance are not the same thing. The former provides funding for construction or renovation projects from the start of the development, while the latter is used to finance the move from one stage of finished or almost complete development plans to the next.
Development finance loans are calculated to cover various stages of the development over a longer term, while exit finance typically provides a smaller short-term loan that can be applied in a few different ways. For example, to repay the initial development loan or allow an early equity release, or as a type of bridging loan to cover the gap between the end of the development phase and the property sale.
Here at ABC+ Architects Certificate, we can assist with both types of finance, as well as bridging loans. If you are specifically interested in development exit finance, please visit our dedicated page for more information on developer exit finance.
Bridging loans are a type of property finance designed to help borrowers straddle the financial gap between two stages of a development or multiple property purchases, so they are typically short-term loans only. They are intended to be arranged fast to assist with cashflow issues, then paid back quickly once longer-term finance has been secured.
They provide a temporary financial solution to keep projects on schedule, but they tend to have higher interest rates because of their short-term nature. The exact interest rate depends on the circumstances of your project, including the urgency and scale of the loan, but bridging loan interest will be quoted monthly instead of annually.
The way it works is similar to applying for a traditional loan – you first make an enquiry about bridging finance for your situation, receive indicative terms (subject to credit approval and receipt of more detailed information), followed by a decision in principle (subject to valuation and due diligence), then legal paperwork is issued and the loan drawn down at the soonest availability.
Speak to us at ABC+ Architects Certificate to find out how we can help with bridging loans.
While it is typically used by property investors and landlords, bridging finance could be an appealing option for anyone who needs to borrow money quickly to fund a property purchase or refurbishment – bearing in mind that the loan needs to be paid back fast, too.
Common reasons to take out a short-term bridging loan include purchasing and/or renovating investment properties for redevelopment, expanding property portfolios in advance of long-term mortgaging, and buying a property at auction. Bridging loans can be especially useful when funds are needed to buy a second property when a current property has yet to be sold.
This type of finance can be used for most kinds of property development – whether it’s a new-build or older building, self-build or commercial development, a light refurbishment or full conversion. As long as there is a clear exit strategy for paying off the loan within the specific term, such as refinancing later on, there should not be too many restrictions on using a bridging loan.
Contact the ABC+ Architects Certificate team to learn more about bridging loan terms.
Bridging finance is typically available for individuals, companies, and trusts based in the UK. This loan may be right for you if the property you require funds for is not currently in mortgageable condition, or you need the funds much faster than traditional lenders can provide them.
Whatever the case may be, the eligibility criteria for bridging loans tends to be more flexible than traditional long-term facilities – but an applicant’s bridging loan eligibility depends on a range of factors, such as the type of property, loan to value, and exit strategy.
While specialist lenders can tailor their requirements to suit individual needs to an extent, they may still have an eligibility framework that your enquiry must fit within. For example, there may be minimum and maximum loan amounts available, limited timeframes for repayment, and higher interest rates dependent on the applicant’s credit history.
Such information should be communicated to you when you first make an enquiry, as we can only proceed with your application if your circumstances are suitable for the bridging loans we facilitate.
As explained above, there are generally several elements of construction work that this type of insurance covers. That said, these aren’t always included as standard, so you may have to request some amendments before you’re happy with the extent of your CAR policy.
If the contract you’re offered doesn’t include the following, and you believe you may need them, you might want to ask your insurer to add any of these things to your suggested cover:
Temporary buildings
Onsite storage
Engineer fees
Restoration of plans/drawings
Demolition/removal of debris
Overtime work/holidays
Surrounding property
Equipment during transit
Commercial legal expenses
These extras aren’t guaranteed, as it depends on your provider’s risk assessment, and usually means extending claim limits. Additional cover also means additional costs, resulting in higher premiums.
For any more help with contractors’ all risk insurance cover, don’t hesitate to contact us.
