Undeveloped land rarely generates income, and we understand how hard it is to buy land with little cash flow. If you’re wanting to secure finance to purchase undeveloped land, you’ve come to the right place.
Here at ASAP Finance, we provide bespoke Land Bank loans to help make your purchase a reality. These are loans made on land where the highest value and best use (of the land) is to develop, but where the development timeframe is yet to be determined.
When developers approach our team, we use our expertise and business acumen to assess the hidden potential in an undeveloped piece of land. With a focus on the value of the asset (as opposed to income), we swiftly review the application, prioritising the creation of a loan facility enabling you, the developer to secure your next development asset.
Our bespoke land loan packages are available to fund:
- Land awaiting a plan or zoning change.
- Development land awaiting resource and building consents.
Key Advantages of the ASAP Land Bank Loans
- Land is the start of the development life cycle, however it is also the most difficult to fund. Partnering with ASAP Finance you are choosing to work with a funder who not only recognises the value in your land, but one who is also committed to seeing you project reach completion.
- ASAP Finance has the ability and scale to lend $50,000,000 on a single transaction.
- Evergreen funding lines provided by ASB & BNZ are supported by private equity ensuring funding is always available for our clients.
- While we don’t offer second mortgage loans, we are extremely flexible when it comes to loan structuring and can look to implement second mortgages to support and existing first mortgage position.
- Take advantage of our term specific rates, with lower interest rates available for short term loans.
- Our experienced lending managers have a strong business acumen that allows us to assess the potential in property quickly, so there’s no risk of the deal falling over.
Land Loan Assessment
For land where the highest value is in development, but a development timeframe has yet to be established, the creation of an appropriate loan requires a keen eye and a lot of experience. Our assessment process allows us to understand the potential locked in undeveloped land and allows you to purchase a section with little hassle.
What we review:
- Details of the security
- Your current loan balances and proposed equity contribution
- Sale and purchase agreements
- Project feasibilities
- Potential development projects and timeframes
- Exit strategy
For more on what we review in our assessments, please visit our lending criteria page.
ASAP Funding Process
- Submit a funding application. We work quickly, assessing your project and providing indicative terms in as little as 24 hours.
- Issuing of formal letter of offer. Following your acceptance of the indicative terms, we issue a letter of offer detailing:
- Our fees (including a legal quote for your solicitor)
- Your interest rates
- Loan terms
- Any terms and conditions (we try to keep these as minimal as possible)
Unlike other lenders, our letters of offer are fully credit approved; we stand by our commitment to fund your project.
- Creation of loan documents.Once you have accepted the offer and paid the loan deposit, we work with your mortgage broker to arrange complete loan documents.
If you are working with a mortgage broker, we will pay brokerage direct, typically equivalent to 1% of the loan amount on drawdown. Our establishment fee and legal costs are payable by you. These are stipulated upfront.