Ground-up development
New-build houses, flats and commercial units, with build costs released in stages as work is completed.
Development finance
Development finance for property developers
Funding to buy the site and build it out, from a first small scheme to multi-unit developments. We put together the appraisal a lender's credit team wants to see, then match the project to lenders who fund that kind of scheme.
What we arrange
Funding for every stage of a project
Development lending is released in stages as the build progresses. We'll explain how each option works and what it costs before you commit.
Conversions
Turning offices, shops, barns or other buildings into residential units, including permitted development schemes.
Heavy refurbishment
Major works such as structural changes, extensions or reconfiguring a building, beyond what light bridging covers.
Mezzanine and stretched senior
Top up senior lending so you put less of your own cash into the scheme.
Land with planning
Buy a site with planning permission, then move onto a development facility for the build.
Development exit finance
Repay the build loan once construction is finished, giving you time to sell or let the units.
At a glance
Typical development finance terms
Every scheme is different. These are the ranges we commonly see.
| Loan size | From £250,000 to £20 million+ |
|---|---|
| Loan to cost | Typically up to 70% to 90% of total costs, with mezzanine |
| Loan to GDV | Typically up to 60% to 70% of the gross development value |
| Term | Usually 6 to 24 months, longer for larger schemes |
| Drawdown | Build costs released in stages after a monitoring surveyor checks the work |
| Exit | Sale of the units, or refinance onto a term loan or buy-to-let mortgage |
Indicative ranges across the lenders we work with. Actual terms depend on the lender, your business, the security offered and status. Finance is subject to lender approval.
Who it's for
- Experienced developers building out new schemes
- First-time developers with a strong professional team
- Builders and contractors developing their own sites
- Landowners with planning permission
- Investors converting commercial buildings to residential
- Developers needing time to sell finished units
What lenders will usually ask for
- Planning permission and approved drawings
- A development appraisal: costs, timeline and expected sale values
- A schedule of works and build-cost breakdown
- Evidence of sale values or rents for similar properties nearby
- A background of the developer and directors, with past projects
- Details of the professional team: architect, contractor, project manager
- Land or property details and title
- Filed accounts, bank statements and existing borrowing
- Your exit plan: sale or refinance
How it works
From first call to funds in your account
Tell us what you need
A short enquiry or call about the amount, the purpose and your business.
We build your case
We prepare the figures, security and story in the format lenders expect.
We approach lenders
We go to the lenders whose appetite fits your deal and negotiate terms.
We see it through
We manage valuations, solicitors and conditions until funds are released.
Questions
Development finance FAQs
How much can I borrow for a property development?
It depends on the total cost of the scheme and its value once built. Senior lenders typically lend up to 60% to 70% of the gross development value. Adding mezzanine finance can take total borrowing up to 85% to 90% of costs.
Can I get development finance as a first-time developer?
Yes, with the right scheme and team. Lenders will want to see a sensible project, a realistic appraisal and an experienced contractor and professional team behind you. We'll tell you honestly how a lender is likely to view it.
How are the funds released?
Usually the land or property purchase is funded at the start, then build costs are released in stages. A monitoring surveyor visits the site and confirms each stage of work before the next payment is made.
How long does development finance take to arrange?
It depends on how quickly the appraisal, planning documents and valuation are ready, and how fast the lender agrees. We aim to move as quickly as the scheme allows, and to keep the lender's checks running alongside your own preparations.
Do you arrange finance to build or renovate my own home?
No. We arrange development finance for business and investment purposes only, such as building to sell or to let. Building or renovating a home you or your family will live in falls under different rules, and we will point you to a specialist adviser.
Related finance
Other ways we can help
Bridging finance
Short-term property finance when timing matters.
Find out moreCommercial mortgages
Owner-occupied and investment property finance.
Find out moreBuy-to-let mortgages
Mortgages for landlords, limited companies and portfolios.
Find out morePlanning your next development?
Two minutes to enquire. A broker replies within one working day.