Nailing the Application Process
The Brickflow® Property Developer Guides are to help unblur the lines, break through the jargon and explain the process in words you won’t need to google.
If we’ve missed anything or you’d like us to explain more, please contact us.
1 / Provide documentation
Once you have found the loan you want to apply for, you’ll need the following key elements to get the loan approved:
Your skills, professional qualifications and previous development history. You’ll only have to provide this once and we’ll save your information for any future applications.
An essential tool for developers and lenders to assess the land value of any piece of land, site or building. You will no doubt have this info ready, which should include all costs (acquisition, build and sales) and expected GDV.
A detailed list of your properties/units with square footage and sales prices.
Asset & Liability (A&L) schedule for shareholders and personal guarantors
A list of your personal assets and liabilities, required to demonstrate adequate cover for your personal guarantee(s). A personal guarantee is your legal promise to repay loans issued to a business where you are a beneficial owner.
A valid identity document (passport, driving licence etc.) and proof of address (utility bill, bank statement etc.)
Source of wealth
A summary of where you obtained your funds, with relevant supporting documentation.
2 / Valuer, QS and Solicitors engaged
Once the lender receives all of the above, they will confirm credit-backed terms and instruct their Quantity Surveyor (QS) and valuer. You will need to cover these fees upfront or agree to cover the cost even if the loan does not complete.
The valuer will:
- Confirm site value and suitability for security
- Run a high-level sense check on the build costs
- Confirm the GDV of the end units
- Provide a report within 10 days
The QS will assess you and your team’s ability to deliver the scheme on time and on budget
The QS will:
- Closely examine costs and construction methodology, working with the valuer
- Assess you and your ability to deliver the scheme on time and within budget
- Agree a drawdown schedule with you
- Provide a report within 2-4 weeks
Solicitors can be appointed at the same time as the QS and valuer, but we recommend waiting to avoid incurring unnecessary costs
Once the reports have been assessed by the lender, solicitors will be appointed. They can be appointed at the same time as the QS and valuer, but we recommend waiting to avoid incurring unnecessary costs.
- You will need to cover the solicitor costs
- Most lenders will insist that your solicitor has construction expertise in-house
- The solicitors will deal with the construction and loan documentation
- The process will take up to 4 weeks
A good legal process will normally take up to 4 weeks. A bad process can take months.
3 / Drawdown
Once the lender is happy with the completed valuation and QS reports, and the lender’s solicitor is satisfied, then funds will be sent to the borrower’s solicitor to complete the loan.
The current industry standard is between 5 and 6 months to complete a development loan. At Brickflow, we aim to complete every loan in 5 to 6 weeks.