Specialist Funding For Property Development Projects, Covering Acquisition, Pre-Development and Construction Phases

Development Finance

Development finance is funding designed to cover the ground-up construction or heavy redevelopment of property, including land acquisition and build costs. It is structured specifically for SME developers delivering new residential, mixed-use or commercial schemes.

Terms typically run 12–24 months, aligned to the build programme and exit.

Key Features

• Security: Secured against the development site (and sometimes additional assets).
• Leverage: Typically up to 70% of Gross Development Value (GDV), or 90% of total project costs.
• Land funding: Up to 70% of site value.
• Build costs: Typically covered in full, and released in staged drawdowns as works progress (monitored by a surveyor).
• Interest: Usually rolled up and repaid at exit (no monthly servicing).
• Loan sizes: From £200,000 upwards, with no practical upper cap depending on lender.

When It’s Used

• Ground-up residential developments
• Small and medium housing schemes
• Commercial or mixed-use projects
• Permitted development and change-of-use schemes
• Heavy structural conversions (where refurbishment finance is not adequate)

What Matters Most

Development finance is underwritten around:

• A realistic build schedule
• Detailed costings and contingency
• Proven GDV supported by comparables
• A clear exit strategy (sale of units or refinance onto investment finance)

If the appraisal margin is thin or the exit relies on optimistic values, funding becomes difficult and expensive.

How We Add Value

Lender appetite varies significantly by project size, asset type and developer experience. We structure facilities to maximise leverage, align drawdowns with the build programme, and get the most competitive fees and rates. We will help you to present lender-ready appraisals and secure the best terms.