Magnet Capital is a principal lender for development finance across the UK and Wales. We understand that every development project is different and our funding is tailored to each individual project to suit the needs of our clients. Use our enquiry form or development finance calculator below to get an initial quote, and a member of our team will come back to you as soon as possible.
Our team has decades of experience in finance and property development. We act as a business partner for our clients and we pride ourselves on our speed, personal service and flexible approach.
We treat all our clients and partners as human beings rather than a number. This enables us to develop long-term relationships and assist our clients developments reach their full potential.
We do not operate as a bank; we only lend our own funds which means that stage payments can be released within 24 hours of site inspection because we understand that timing is key when it comes to property development.
Our applications are streamlined – we process them quickly and efficiently so that you can have access to fast funding when you need it.
We aim to establish long term relationships with everyone we work with. Our job is to help our clients’ businesses grow.
We meet every client we work with face to face because we believe good working relationships can never be built over the phone or by email.
We lend funds for development finance only. Unlike other lenders, our sole focus on development finance reflects our deep level of knowledge and expertise.
“Having previously used main line banks for property finance, I found they were unwilling to lend development finance for this project at this time. I approached Magnet Capital and was very pleased to be accepted for finance by them. I found the company very approachable and friendly and their expertise in the property market was extensive.
The loan was agreed and arranged without fuss and we were able to access the funds within weeks of our initial approach. Sam, Debra and the whole team are great to deal with and are at the end of the phone for advice and assistance if required.”
“Working with the Magnet Capital team was a dream come true. They delivered on everything they said they would and I could really trust them to deliver when I needed it. I’m looking forward to working with them for many years to come.”
David Tilbury – Managing Director
“I’ve used Magnet (formerly Regentsmead) for 2 developments now, about to commence my 3rd with them. Sam, Ashley, Jeremy and Debra have always been extremely helpful, reassuring and fantastic to work with. Nothing is too much trouble for them and decisions have always been made very quickly. Stage releases come out within hours of inspection ensuring the development progresses quickly. I highly recommend them to anyone considering obtaining development finance”
Resurgo Developments Ltd
how does development finance work?
Development finance is a relatively new and effective way to fund an interesting property development or opportunity. The main benefit is that you can access finance on more flexible terms and often much faster than your traditional bank, whilst not having to undergo the long and often restrictive lending criteria.
If you come across an opportunity to build, buy or develop a property, Magnet Capital can give you access to capital in order to bring your project to fruition.
The amount you can borrow is based on the estimated value of the project upon completion, known as the Gross Development Value (GDV).
Magnet Capital lends at up to 55% GDV, so if your residential build is estimated to be worth £1 million, you can borrow up to £550,000 (plus rolled up interest).
The benefit of working with a development finance lender like Magnet Capital means that you can pick up the phone, tell us about your project and we can give you indicative terms immediately.
Plus, we assess your application through human eyes and not through a giant automated computer, giving you a more personable and flexible quote and guidance throughout the funding and development process.
How does the application work?
An application for development finance with Magnet Capital can be as simple as a making a phone call, quick email or filling in the form provided, with just a few basic details including:
- Details of the opportunity
- Property size e.g number of bedrooms
- Amount you want to borrow
With just this information provided, we can usually provide a decision in principle – which gives you an indication of how much you can borrow and at what rates.
To progress with your application, you will need to complete our form which consists of:
- Details of the actual build
- Information about planning permission
- Cash flow position
- Homeowner status – your equity in other properties
- Declare any CCJs, credit histories
What are the next steps?
When completing our application form, you must include your exit strategy, which may consist of either selling the property or refinancing from your bank or other source.
Sign-up Meeting – This is where we meet with you face-to-face (or through a virtual meeting room) and discuss your projects in further detail. This is a unique opportunity to meet and greet with the client and understand all the terms of the agreement and project.
Instruct Solicitors – Both parties instruct their solicitors and we start to put all the pieces of the application together and get ready for funding.
Instruct a Survey – Magnet Capital provide a surveyor, within 24 hours if necessary, to provide a legitimate and up-to-date valuation of the property.
Funding – If everything is approved, we are now ready for funding. Magnet Capital has been able to fund a project within 14 days of applying, however, this typically takes on average around 6 weeks as we await feedback from solicitors or other relevant third parties.
Try our development finance calculator
You can use our handy calculator to give you a rough estimate of how much you can borrow for your upcoming property development project.
Once we have the basic information we can speak to discuss your development finance requirements further.
DEVELOPMENT FINANCE FAQ’s
Development Finance is short term finance for the new build construction, conversions and refurbishment projects, predominantly for residential projects. Funding can be used for 100% of the build costs and up to 50% of the purchase price.
Magnet Capital is a principal lender of development finance for small residential construction projects. Magnet Capital is a development finance specialist, so we are not distracted by offering bridging, buy to let or any other types of loans. We prefer to stick to what we know!
Accordingly, the team are property development finance experts with a focus on creating long term relationships with our borrowers and brokers. Magnet Capital is not a bank and we pride ourselves on our speed, personal service, insight and flexible approach to development finance lending. All our clients get to know the Magnet Capital team as individuals and work closely with them.
Magnet Capital will lend from the Midlands southwards including south Lincolnshire and Derbyshire, covering the whole of Southern England as far west as Devon. We will also lend in the Cardiff postcodes. Within these areas we will lend provided a reasonably active market exists for the finished dwellings.
We are an unregulated lender meaning that we will not lend against someone’s primary residence.
Once we are provided with an overview of the project, location, the key numbers (site cost, construction cost and gross development value) and details of the borrower’s experience and net worth, we will provide a decision in principle within one working day, however usually it will be available within a matter of hours. We appreciate that time is of the essence!
Magnet Capital offers loans from £100,000 to £2,000,000. We’ll lend up to 100% of the build costs of your development project, and 50% of purchase price or current site value.
Magnet Capital lends on residential new build, conversion or refurbishment projects
At Magnet Capital, when we have all the details of a loan and they fit our criteria, we will be able to provide you with a quote, or decision in principle (DIP). Our DIP will clearly outline all the costs of borrowing from us, including professional fees, such as for solicitors and surveyors. We don’t hide anything and are completely transparent about our costs. We appreciate that when costing for a development project, it’s essential to know what the finance charges will amount to, as this will affect your bottom line.
No, you cannot borrow money from Magnet Capital against your own primary residence or a home or flat that you live in. We are an unregulated lender and this is not something that we can facilitate.
All we need in order to provide a DIP is a brief outline of the project. If the project works for us then we are able to move to the next steps, which involves completing and returning our simple application form. Following this we then arrange a meeting in our office so we can sit across a table and explain the ins and outs of the development facility, in a relaxed face-to-face setting.
This all comes down to how quickly the lawyers can work on the loan behind the scenes. We really do stress to our clients to have good legal representation with professionals that is familiar with this sort of work. We say as an average from our sign-up meeting it takes 4 to 8 weeks to complete the legal work, however this is a very rough guideline.
We are committed to trying to minimise costs for our clients, so on loans where the build costs are less than £500,000 we instruct a chartered surveyor to monitor a scheme rather than a quantity surveyor. Our professional advisers act as an additional sounding board for our clients and indeed have proved invaluable over the years by picking up on factors that have subsequently avoided our clients spending additional time and expense in the future.