Ground-Up New Build
Residential schemes from a single new-build house through to 100+ unit apartment blocks. We work with lenders experienced in schemes of all sizes and types.
Ground-up new build, permitted development conversions, heavy refurbishment, HMO and commercial-to-residential schemes. Specialist lenders who fund against gross development value, monitored to milestone, with the flexibility a real build needs.
Development finance is a specialist lending product designed to fund property development projects, from acquisition through to construction and exit. Funds are drawn down in stages as the build progresses, with interest typically rolled up until completion.
Borrow against the completed value of your scheme, not just the site or current build cost.
Senior lenders can fund up to 100% of construction costs within the overall GDV envelope.
Interest is typically rolled up during the build and repaid at exit, preserving your working capital throughout the project.
Clear exit strategies via sale of completed units or refinance onto buy-to-let or commercial mortgages.
Development finance is used for a broad range of property development activities, from single-unit self-builds to multi-unit residential schemes and complex commercial conversions.
Residential schemes from a single new-build house through to 100+ unit apartment blocks. We work with lenders experienced in schemes of all sizes and types.
Office-to-residential conversions, barn conversions and other change of use schemes under permitted development rights, without the need for full planning permission.
Extensive structural works, reconfiguration and property upgrades that go beyond what a standard refurbishment bridging loan can fund. Drawdown in stages as works progress.
Converting single dwellings or commercial buildings into licensed houses in multiple occupation. Specialist lenders who understand HMO licensing and exit valuations.
Change of use projects converting former commercial buildings, offices, warehouses, retail, into residential apartments or houses. A growing area of development activity.
Acquire land and fund the full development in a single facility. We structure land acquisition finance alongside the development facility to maximise your gearing.
We review your development appraisal, costs and GDV to confirm viability and establish the maximum lending available for your scheme.
We search our panel of specialist development lenders to identify the best fit for your project, considering rate, gearing, track record requirements and drawdown flexibility.
We obtain a Decision in Principle from the selected lender, typically within 48 hours of submitting your application and appraisal.
The lender appoints a monitoring surveyor to oversee the build. We manage this relationship and ensure drawdown requests are processed efficiently.
Funds are drawn down in agreed stages as the build progresses and verified by the monitoring surveyor, through to practical completion and exit.
Senior development debt typically covers up to 65% of the Loan to Gross Development Value (LTGDV). When combined with mezzanine finance, total funding can reach up to 90% of total project costs, including land and build. The exact leverage depends on your experience as a developer, the scheme location, and the lender's appetite.
GDV stands for Gross Development Value, the aggregate end value of your completed development, typically based on individual unit sales or investment value. Development lenders use GDV rather than cost to calculate maximum lending because it reflects the true value being created. A strong GDV relative to costs gives lenders confidence in the project's viability.
Funds are released in stages, known as drawdowns, as the build progresses. Each drawdown is triggered by a site inspection from the lender's monitoring surveyor, who verifies that the works have been completed to the required standard before authorising the next tranche. This protects both the lender and the borrower throughout the build.
Not always, some lenders will provide finance subject to planning permission being granted, or for schemes that fall under permitted development rights. However, having full planning consent in place significantly improves your chances of approval and typically results in better rates and terms. We can advise on the right approach for your specific situation.
Mezzanine finance is a second charge loan that sits behind the senior development debt. It enables higher overall gearing, potentially up to 90% of total costs, by bridging the gap between the senior loan and the developer's equity. It carries a higher interest rate than senior debt but can make projects viable where equity is limited.
Lenders require a credible exit strategy before advancing development finance. The two primary exits are: sale of completed units (residential or commercial), which repays the facility from proceeds; or refinance onto longer-term finance such as buy-to-let mortgages or a commercial mortgage. We help you plan and structure your exit from the outset.
Development finance is won and lost on the appraisal and the exit. Here is how we approach yours.
We sit with your numbers before the lender does: GDV, costs, contingency, programme, exit. The deal that gets to the underwriter is one they can say yes to.
From senior debt to layered facilities with mezzanine on top. We coordinate with your monitoring surveyor and QS so drawdowns track the build, not the bureaucracy.
Track record helps but is not a hard requirement. We work with lenders who back competent first-time developers when the team and the scheme stack up.
Tell us about the GDV, the costs, the experience and the exit. We come back with realistic lender fit and loan-to-cost figures before you pick up the phone.
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