Development Finance 


  • Up to 50% LTV of the plot of land, taking the lower amount between valuation and purchase price, which must be a minimum of €2 M, i.e. minimum loan €1 M
  • The plot of land should have a planning permission in place or in a late stage of the approval process.
  • Up to 75% LTV of Gross Development Costs.
  • Developer must have and evidence proven track record of delivered projects, ideally in Spain.

To analyse any application, we shall require:

  • Business plan/Basic project: location, estimated income from sales, number of homes, typology, etc.
  • Money disbursed so far or to be disbursed with planned timeline of disbursements.
  • Recent appraisal of the plot or asset.
  • License or estimate timing to obtaining it
  • Amount of the loan required and its destination.
  • Estimated cost of construction (based on current costs).
  • At least 50% pre-sales required for multiple properties development. Minimum deposited paid by the buyer must be 10% of the purchase price.

Development loan amount between 1 and 10 M €. The 12-18 month bridging loan, 24 month developer loan. As long as there is real estate collateral, except for hotels, we can carry out an operation. We also do equity releases, always with a first rank mortgage on the collateral.
The conditions here already vary greatly depending on the type of project, but as indicative for December 2022 are:

  • Set up fee: 4%.
  • Interest on the drawn capital: 9-13%.
  • Fee for undrawn capital: 2-3%.

On your request, we can recommend you seasoned local lawyers that would not only assist you with the legal due diligence on the property, which is highly recommended,  but also provide you with their advice on how to minimise your tax liabilities. 


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