Most finance brokers will tell you that 100% Real Estate modernisation mortgages is one of the most popular of the specialist finance products. Although there are several special requirements for this type of property finance, it is possible to find lenders who are willing to help.

The project must demonstrate a considerable profit. It does not matter if it is a refurbishment or development scheme, but either way the developed value will need to show at least 25% return on investment. For a simple estimation simply add together the purchase price and development (or refurbishment) costs then multiply by 1.25 For example if a site costs 200,000 and the development costs are 33,000 the total costs are 233,000. The developed value would then need to be at least 295,000. although this is a very rough estimation but it does give a good "rule of thumb".

The next major question that a property development lender will ask is "why is the developer asking for 100% Real Estate mortgages?" Although it is not unusual for a property developer to have all their available capital tied up in one project whilst looking for a new scheme, there are a number of other acceptable answers. The challenge comes when a developer asks for high levels of finance with no provable experience and little support.

As they complete more projects a property developer will build a team of people to back them up, this will consist of suppliers, trades people and specialists such as architects, quantity surveyors and solicitors. This team becomes an asset and a good quality team can go a long way towards persuading a property development lender.

The are some property development lenders in the market who are willing to fund 100% of the development costs, however it is more common for two banks or lenders to work together. Often a bank will supply the majority of the finance with the balance being made-up by another property development lender. Either way 100% property development funding can be a very specialised form of lending and using a specialist finance broker can make all the difference.