Development Finance
We arrange development finance facilities for residential and commercial developments through our large network of lenders, providing flexible funding solutions tailored to your project and build programme
What is Development Finance?
Development finance is a short-term loan used to fund the construction, conversion, or refurbishment of residential or commercial property.
It is typically used by property developers to cover land acquisition costs and up to 100% of build costs, with the loan repaid on completion through the sale or refinance of the completed project.
Unlike a standard commercial mortgage, development finance is drawn down in stages in line with the build programme, with interest charged only on the amount drawn at any given time.
Typical Uses
Residential development - Fund the construction of new residential units from foundation to completion, including houses, apartments, and multi-unit sites.
Commercial development - Finance the construction of new commercial premises including offices, retail units, warehouses, and mixed-use schemes.
Site acquisition and build - Cover both the land purchase and construction costs within a single facility, simplifying the funding structure for the developer.
Conversion - Fund the conversion of existing buildings into residential or commercial use.
Refurbishment - Finance larger refurbishment projects on an existing property.
Key Features
Loan Terms - typically between 9 and 48 months, structured around your project timeline and build programme.
Loan Amount - borrow from £250,000 up to £100 million, depending on the project size and lender criteria.
Loan to Cost - up to 90% of build costs as standard, with up to 100% available in certain circumstances.
Loan to Gross Development Value - up to 75% LTGDV.
Staged Drawdown - funds are drawn down in stages in line with the build programme.
Exit - the loan is repaid on completion through the sale of the completed units or refinance onto a longer-term facility.
Get in Touch
We’d love to hear from you. Please reach out and we will be in touch shortly to discuss your development finance requirements.