Fuss Free Finance: Solicitor's Funds

Land and Construction Funds - (Solicitor's Funds)

1. Standard Draw Down

Funds for the construction of either residential or commercial/industrial properties are available subject to sighting the usual planning permits, stamped building plans and building contracts if applicable. Advances are to a maximum of 70% of valuation (although 2/3rds of valuation is the norm) with draw downs (progress payments) available in the usual way. Quarterly payments (and even six-monthly in some cases) in arrears are available with many people (especially those undertaking dual-occupancies) completing construction before the first payment is due!

Following the construction period (minimum six months) full discharge of the loan is possible without penalty upon the giving of one (1) months notice.

See Rate page for current interest rates and loan criteria and/or email the Loan Inquiry Form for a full written indicative offer/quotation which includes: confirmation of amount, rate and term, applicable fees, application forms and a procedure page outlining steps to settlement.

2. Joint Venture - this funding is presently suspended due to the current economic crisis

As an alternative to the standard x% of end value progress payments style of construction funding Fuss Free Finance offers joint venture funding to 100% of hard and soft costs. Based on the Macquarie Bank model (the bank takes up to 50% of the estimated profit and requires "financials") our J/V partner only takes up to one third of the estimated profit (gross realization less total debt) and whilst wanting to be satisfied that the developer and builder have the experience to complete the project taxation returns are not required. Be reimbursed for out of pocket expenses (land cost etc.) and pay no interest payments during the period!

3. Development Land

Prior to beginning construction and approaching a construction lender which requires stamped plans, permits, fixed price building contract and sometimes pre-sales the land must be obtained – this funding is usually not available via construction lenders.

Fuss Free Finance has access to lenders who will advance funds against vacant development land (usually to a maximum of 2/3rds of valuation) in order to secure the land but prior to the commencement of construction thus enabling time for relevant documentation to be obtained. These funds are interest only and have a fixed rates for a one (1) year term with the right of early repayment so developers can discharge the facility once the stamped plans, permits, fixed price building contract and sometimes pre-sales are obtained and approach a construction lender