01
Appraisal and cost plan
A development appraisal and cost plan a lender can test line by line.
Development management 04
Funding preparation
Prepared for the lender, from application to final drawdown
Development lenders lend on a credible appraisal, a cost plan they can test and a team they trust. Lenders appoint Reltic as their monitoring surveyor, so we know what they check.
- 01
A lender-ready appraisal, cost plan, programme and cash flow
- 02
Answers to the lender and monitoring surveyor during due diligence
- 03
Monthly drawdown information through the build
The problem
Funding that stalls the build
Most drawdown delays are information problems, not money problems.
An application built on a weak cost plan makes a lender cautious. It lends less, adds conditions or asks for more equity, and the scheme starts under pressure.
During the build, drawdown requests that do not match the work on site are queried by the monitoring surveyor. Payments are delayed, the contractor slows down, and the programme and the finance costs both grow.
What we prepare
Information a lender can rely on
Prepared in the form lenders and their monitoring surveyors expect.
02
Programme and cash flow
When the work happens and when the money is needed, month by month.
03
Team and contract
A summary of the professional team, the contractor and the building contract.
04
Due diligence
Answers to the lender’s and monitoring surveyor’s questions before the facility is agreed.
05
Monthly drawdowns
Work completed, the contractor’s valuation, cost to complete and changes, prepared each month.
06
Early warnings
Changes to cost or programme reported to the lender early, before they become a problem.
We know what the monitoring surveyor will ask, because we are often the one asking.
Our position on lender relations
We work regularly with development finance brokers and lenders, and we can introduce brokers we know. We do not lend money, arrange credit or give financial or investment advice. If we ever receive a fee for an introduction, we tell you before you decide.
We act for one party on each project: as development manager for the investor, as monitoring surveyor for the lender, or as quantity surveyor for the developer. Never two of those on the same scheme.
Questions
Funding, answered directly
How much will a lender fund?
It varies by lender and scheme. Lenders usually fund a proportion of the total cost, and you or your partners provide the rest. Your broker will advise on terms.
Can you recommend a broker?
Yes. We work with development finance brokers and can introduce ones we know. The choice is always yours, and we tell you upfront if any introduction involves a fee to us.
Why do drawdowns get delayed?
Usually because the information does not match what has been built. We make sure it does.
Will you also be the lender’s monitoring surveyor on my project?
No. On any one scheme we act either for you or for the lender, never both.
Insights
Further reading on development finance
Development finance
Preparing a cost plan for a funding application
The cost plan that persuades your board is not the cost plan that satisfies a funder. One is answering whether the...
Read the article
Development finance
Drawdown certification explained
Every month somebody decides how much of a facility can be released. The difference between doing that properly and...
Read the article
Development finance
Why lenders want your equity in first
The order in which money goes into a scheme is not an accounting detail. It decides how much of your own capital is...
Read the article