Development Finance

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Development Loans at a glance

Frequently Asked Questions

Case Study

We specialise in raising development finance on residential and commercial property transactions in the UK and Europe

We can help developers get the right finance for UK residential and commercial projects

  • Development finance from £100,000 to £150m+
  • Market leading rates
  • Finance options for England, Scotland, Wales. Europe on request
  • International development funding
  • Loans up to 100% of development finance cost
  • Development exit funding for projects near completion
  • Finance with no exit or early redemption fees

  • Refinance for projects behind schedule
  • Options for first time developers
  • Finance solutions for uninhabitable properties
  • Conversion finance e.g. permitted developments, care home conversions
  • Joint venture finance options
  • Equity partners for large deals
  • 2nd charge options
  • Finance for major home renovations

  • Terms up to 36 months
  • Complex cases always considered
  • Finance for a variety of ownership structures including multiple SPV’s, Offshore SPV’s, UK based trust structures, overseas trust structures. We can also help with a requirement for finance to be based on shariah principles
  • Finance for new build, conversion or refurbishment developments including mixed use and student accommodation

We can help source finance for land, commercial to residential conversions, assets such as care homes, barn conversions, places of worship, petrol stations, fisheries, air rights (with acceptable security) and charities.


Frequently Asked Questions


What is Development Finance?

Development Finance is a short-term loan granted for the development or refurbishment of residential, commercial or mixed use properties.

Usually, they are for between 3-24 months, and are specifically to assist with the purchase costs and build costs associated with larger projects and ground up developments. This can be a new build, conversion or refurbishment covering a single unit to multiple units built in a number of phases.

Development finance could be used to cover both land purchase and building costs. A lender might finance 60% of a property or land purchase and up to 100% of the building costs, meaning the developer would fund a much smaller amount up-front.

Development finance means you can raise the capital to turn development ideas into reality. Development finance lenders will take the future value of the property into consideration when agreeing to the loan, also known as GDV (Gross Development value).

All developments are subject to acquiring the correct planning permission, if needed.

What is Development Finance used for?

Development Finance is used by builders and developers planning projects and ground-up developments. Such as: Renovations, Conversions, Refurbishments and New builds.

How does Development Finance work?

Development Finance differs from a traditional mortgage lender (who will consider the value of the actual property being financed) in that they will take the value of the completed property into account.

The time period is variable usually between 3-24 months.

With some larger projects, the release of funds will be in phases (drawdowns), subject to an agreed surveyor signing off each phase.

Can you get Development Finance with another person or as a limited company?


Are there different types of Development Finance?

Yes, the first stage of the funding will often be used to assist with the purchase of the development site.

The second stage of funding is used to pay for the costs of the building works associated with the project.

Do I need Development experience?

Not necessarily. Evidence of successful past involvement in projects, relevant expertise, and a good understanding of the development would be beneficial. If you lack personal experience, a well established team, including a Project manager would be taken into consideration

What is Developer exit lending?

Developer exit lending, commonly called a development exit loan is a short-term finance option that enables a property developer to refinance, usually at a lower rate than their initial development finance facility (loan). Development projects qualify for developer exit funding once they are wind and watertight. This funding allows developers to release equity and save on interest payments due to a lower interest rate.

If I already have Development Finance, Can I Re-Finance?

Yes, in most cases.

How much does Development Finance cost?

Typically, the costs include:

Broker Fees

Product fees, charged by the lender


Valuation Fee, these can vary

Solicitors/Conveyancers Fees, these can vary

Do I need a deposit?

Each Development finance solution is different, depending on the lender. For ground-up builds, the maximum loan to value is typically around 70% of the end value of the property being built. You will need 30-40% of the site price as a deposit.

Do I pay monthly?

No, normally the interest is rolled up and paid in addition to the loan amount and fees when the project is finished and sold.

How do I pay off a Development loan?

Usually, this would be via refinancing or selling the finished property or properties.

Can I get a Development finance if I have Adverse Credit?

Adverse credit, also known as bad credit, does not necessarily mean you are unable to get a mortgage. Every situation is unique and we can advise accordingly.

How can I check my Credit Report?

Use this link for Check My File Credit Report

Check my file offers a 30-day free trial which is £14.99 per month, thereafter, and can be cancelled at any time.

What should I do next?

When you are ready, please give us a call. One of our friendly advisers will gather information about your enquiry and offer advice accordingly. We offer FREE initial consultations.


Case Study Example


Mr X buys a plot of land with planning permission to build four, three bedroom detached houses. This is known as a ground up development.

The land is valued at £250,000 and the cost to build all four houses from the ground up will be £400,000.

The estimated value of each house when finished is £250,000,

So a Gross Development Value (GDV) of (4 x £250,000) £1,000,000.

In this case they can raise up to 70% of the land cost = £175,000, and 100% of the build cost.

Therefore, a loan facility would be set up for £575,000 (net).

The initial release of money would be for £175,000 to fund the purchase of the land. The remaining £400,000 will be released in stages as the build progresses.

The Interest rate of 0.99% per month is rolled up and a 2% product fee (plus broker fees etc) are added.

Once sold the development loan is paid back. In this case the developer would make £425k less fees and interest.

With most development loans the interest is only charged on funds that have been drawn down and can be repaid earlier (for example 9 months into a 12 month loan period).

This example is based on figures from a development lender on 02/04/2024 and is for illustrative purposes only.

Your property may be repossessed if you do not keep up repayments in line with the lenders schedule. Think carefully before securing debt against any property.