Property Finance Explained



Do you fully understand the different types of property development funding that are available to today’s sophisticated developer? This page was put together by Hank Zarihs Associates to give an expert overview of each type of funding, to help you decide which might be best suited to your next development project. If you have any questions, Hank Zarihs are online in our forums ready to help.



Bridging finance mostly used for its speed in acquisition of properties for auction purchases or private sales, also serves purpose for light or heavy refurbishment for residential, semi commercial, & commercial properties. We work closely with our chosen lenders getting our clients the best possible deal. We have access to lenders who can offer
• Up to 80% LTV
• Rates starting from 0.55% per month
• 1-2% arrangement fees
• NO Exit fee’s.
We work swiftly and professionally being able to get you credit backed terms within 1-2 hours, giving you the best advice and service from start to finish getting bridging finance deals completed in days.
Ask a question about bridging finance in the forum.



We provide fast solutions to professional borrowers requiring a 2nd charge bridge loan to release equity for any purpose. As our bridging lenders are true asset based lenders they are not concerned with your past credit history and base their decision on the property and the way the funds will be repaid. Our 2nd charge lenders can offer;
• Rates from 0.90% per month
• 2% arrangement fee
• No exit fee
Ask a question about second charge lending in the forum.



Finance for light refurbishment is used for projects that do not require planning permission i.e. no structural changes to a property. Our short-term lending products are ideal for clients who wish to purchase residential or commercial real estate needing light refurbishment works before they either sell, or retain. The following are typical situations appropriate for short term lending.
• When purchasing a property that requires thorough cleaning and redecoration before the property can be marketed for rental/ re-sale.
• Upgrading kitchens and bathrooms
• Improving market demand by updating facilities.
• Buying a property with a known issue with the intention to remedy the issue and then rent/sell the property
For light refurbishment products, we have access to lenders who can offer
• Up to 75% LTV
• Rates starting from 0.69% per month
• 1-2% arrangement fees
• No Exit fees.
Ask a question about light refurbishment finance in the forum.



Finance for heavy refurbishment is for projects that require planning permission. Our short-term lending products are designed for borrowers who wish to purchase residential or commercial real estate requiring heavy refurbishment works, before they either sell, or retain.
The following are typical situations applicable to heavy refurbishment loans.
• Extensions and loft conversions
• Removing internal walls
• Works requiring planning consent (planning must have 12 months to run from origination)
• Change of use where property has full detailed planning consent in place
• Clients taking advantage of permitted development rights
If you require funding for 100% of the build cost then see our Stretched Senior Debt offering. We have access to lenders who can offer
• Up to 75% LTV
• Rates starting from 0.75% per month
• 1-2% arrangement fee’s
• NO Exit fee’s
Ask a question about heavy refurbishment finance in the forum.



As a developer cash is king and having enough of it to capitalise on a new opportunity is key to success. Until now 80% of our new developers have only sourced senior debt funding from traditional high street banks and they have encountered difficulties with getting the funding they need within the period that is required. With little appetite for speculative residential development funding these high street lenders will initially say “this is of interest” but then you will face obstacles and hurdles and 6 months later you still have no decision. We understand that each client may have different priorities and these are just some of the options we can offer.
• Lending up to 90% of Cost starting at 6.5%
• Max lending up to 75% of GDV
• Roll up of interest
• Non-Compound interest
• Fast Decisions
• Terms issued with 24 hrs
• Credit backed terms within 5 days
• Ability to drawdown in weeks, not months
• No need for company accounts
• Experience is essential and ability to show past performance.
Ask a question about stretched senior debt in the forum.



Many of our clients who come to us to provide short term loans for acquisition or development purposes intend to retain the asset and need to secure exit funding. It makes sense for us to be able to offer term lending. With access to a vast number of challenger banks, foreign banks and investment banks we can offer competitive rates and terms when considering a long-term finance solution.
Equally, for clients who already own their asset and wish to refinance, or for clients wishing to purchase an investment property we can arrange the term finance you require. Whether you are rate driven or require a more flexible lender we are usually able to assist.
• Vanilla investments
• Specialist residential
• Single dwellings
• Portfolios
• HMO/ Student Lets
• Commercial
• Semi Commercial
• Trading businesses
Generally, we require more detail than when arranging a short-term loan, but once we have the information we can give you an indication of the cost and aim to have terms agreed from one of our lenders with 72 hours, if not sooner.
Our lenders will lend
• Up to 75% LTV
• Rates starting from 2.99%
• 1-2% arrangement fee’s
• No Exit fees once the term is over
Ask a question about term lending in the forum.



Our non-status lenders are extremely flexible and very easy to work with. They require no documentation for our clients and can get deals turned around in a number of days. The non-status lenders are more useful for clients who may have had credit issues in the past and need to get money out for a project quickly. Our lenders for this product can offer;
• Rates from 0.83 per month
• Up to 70% LTV
• 1-2% arrangement fee
• No exit fee
Ask a question about non-status lending in the forum.


We included some case studies to give a clear overview of how finance can be used for different types of property investment projects. The first is a development project and the second is an auction property. If you have any questions surrounding a project you are considering, chat to our experts in the forum or contact them directly at [email protected]



A client come to us who is based in the north east of England looking for a development finance. The client needed to repay the debt with their current lender and the funds to build 19 new build apartments. The site was land with full planning permission valued at £720,000 with a GDV of £2,531,400. The client presented the case to us very professionally including appraisals, drawings & past project history which enabled us to submit the case to our lender and then getting terms to the client the same day. We were able to get the client the funds needed to repay their current lender and 100% of the build costs. We received back signed terms from the borrower, we had both valuation and legals instructed immediately. We completed the application on behalf of the borrower had the declarations signed and sent back to the lender so that the lenders underwriter could begin working. They moved very quickly on the case while both the lenders & borrower’s solicitors were working together in the background. We chased the case up daily at both ends which gave both sides solicitors an urge to act quickly for this transaction. This case hit no speed bumps and completed very quickly with first drawdown taking place within 4 weeks from the initial enquiry. The client has since sold several apartments and is moving onto another scheme that we are providing the finance to build another 12 apartments.

Case Overview
• Value – £720,000
• GDV – £2,531,400
• Build Cost –
• Net Loan Amount – £1,501,806
• Term – 12 Months
• Rate – 0.85 per month
• LTGDV – 59%


We met a client at one of the property auctions we attend, the client was looking at a particular lot on the day and wanted to get a decision quickly on whether we could arrange the finance for them to purchase to the property and carry out very light refurbishment to then keep as a buy to let. The client needed 70% LTV for the purchase and works. We contacted our preferred lender for auction finance, after giving them the information and the clients intentions towards the property the lender gave us verbal confirmation that we could proceed followed up by agreed terms 10 minutes later. The client won the bid at auction, and then contacting a member of staff in our office to get the application form completed, we submitted the application form to the lender alongside having legals instructed and a valuation booked for the next day. The valuation report came back to us 3 days later, and both lender and borrower’s solicitors worked together to get this deal completed in 10 days. The client then needed to refinance the property 3 months later and put it onto a buy to let, we arranged a 10-year term for the client at a rate of 3.99% per annum.

Case Overview
• Value – £300,000
• GDV – £365,000
• Loan Amount – £225,000
• Term – 6 Months
• Rate – 0.75 per month
• LTV – 75%