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100% build costs for new build detached house

100% build costs for new build detached house

The client: A married couple operating via a newly formed limited company. The couple had reasonable development experience from similar projects.

The property: The clients wished to purchase a plot of land in the Croydon area with the intention of building a 1700 sq ft property upon it. The proposed development is a 4-bed detached house on two storeys.

The finance: At the time of contacting us, the clients had already secured finance via another broker and wished to know if the proposed funding was appropriate. Knowing that the clients’ experience and substantial contribution towards purchase costs would be attractive to lenders, we set about negotiating another deal.

The clients were keen to proceed quickly, which can be difficult when dealing in development finance with timescales sometimes stretching out to six months. With this in mind we approached a high street bank that we know from experience can work quickly and efficiently. We were able to substantially improve upon the original finance terms, securing both lower fees and a lower interest rate.

Additionally, the original finance terms called for an independent monitoring surveyor. This can be costly, with fees of £1,500 for an initial report and a further £500 each time the surveyor visits the site. This was not a requirement of the new deal we secured for the clients, with works instead to be monitored with site visits by a bank relationship manager and certified by the clients’ own architects.

In line with the clients’ wishes, the application proceeded swiftly, progressing from application to drawdown in less than three months.

Property Details

The terms of the finance were as follows:

Property/land purchase price: £323,000

Build costs: £310,000

Gross development value: £775,000

Loan facility: £380,000

LTV: 49%

Rate: Bank Rate (currently 0.25%, variable) + 3.5% (3.75%) term tracker

Term: 15 months

Facility fee: 2% (£7,600)

Exit fee: 1% (£3,800)

Consultant: Paul Keddy01732 471655


This is just one example of how we have helped secure finance for a client. If you have a similar scenario or something you'd like us to look at please get in contact with us on 0345 345 6788 or contact me directly at


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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.