Development Finance Specialists

Development Finance for UK Property Projects

Fund ground-up developments, conversions and major refurbishments. Access up to 70% LTC and 65% LTGDV from specialist development lenders.

70%
Max LTC
65%
Max LTGDV
0.70%
Rates from (pm)*
£100m+
Max Loan

*Indicative rates. Actual rates depend on project details and creditworthiness.

Compare Development Finance Lenders

Indicative rates from specialist development lenders. Rates are monthly and vary based on project type and experience.

Lender Rate From Max LTC/LTGDV Loan Range Project Types Action
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Important: Rates shown are indicative monthly rates and subject to change. Actual rates depend on project specifics, experience level, and leverage requirements. Development finance is typically unregulated. Your property may be repossessed if you do not keep up repayments.

What is Development Finance?

Development finance is specialist funding for property development projects. Unlike standard mortgages, funds are released in stages as construction progresses, monitored by a quantity surveyor.

It's designed for:

  • Ground-up developments - New build residential or commercial
  • Conversions - Office to residential, barn conversions
  • Heavy refurbishments - Structural works, extensions, change of use
  • Mixed-use schemes - Retail/residential combinations

Typical Development Finance Structure

Land/Site Purchase Day 1 Advance
Up to 60-70% of site value
Build Costs Staged Drawdowns
100% of build costs (within LTC limits)
Total Facility Max LTGDV
Up to 65% of Gross Development Value

Development Project Types We Finance

From single unit developments to large-scale schemes, we connect you with lenders for all project types.

New Build Residential

Single houses to multi-unit schemes. We have lenders for 1-100+ unit developments.

  • • Houses & apartments
  • • Spec builds & pre-sold
  • • Build-to-rent schemes

Commercial Developments

Office, retail, industrial and mixed-use commercial schemes.

  • • Office buildings
  • • Retail units
  • • Industrial/warehouse

Conversions

Change of use projects including permitted development rights.

  • • Office to residential
  • • Barn conversions
  • • Church/chapel conversions

Heavy Refurbishment

Major works requiring planning or building control sign-off.

  • • Structural alterations
  • • Extensions
  • • Full renovations

Land with Planning

Site acquisition with approved planning permission.

  • • Outline planning
  • • Full planning
  • • Land banking

Mixed-Use Schemes

Combined residential/commercial developments.

  • • Retail with flats above
  • • Live/work units
  • • Leisure combinations

How Development Finance Works

Understanding the staged drawdown process and what lenders look for.

1

Initial Funding

Day 1 advance covers site purchase. Typically 60-70% of site value.

2

Build Phase

Funds released in tranches as construction milestones are reached.

3

QS Monitoring

Quantity surveyor inspects and certifies work before each drawdown.

4

Exit

Repay via unit sales or refinance to term debt on completion.

Development Finance Costs

Typical costs involved in development finance. All figures indicative.

Interest Rate 0.65% - 1.2% per month*
Arrangement Fee 1% - 2% of facility
Exit Fee 0% - 1% (varies by lender)
Valuation £2,000 - £5,000+
QS/Monitoring Fees £500 - £1,500 per visit
Legal Fees £3,000 - £10,000+

*Rates are indicative and depend on project specifics, experience and LTV/LTC.

Get a Development Finance Quote

Tell us about your project and we'll connect you with suitable lenders.

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Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

Development Finance FAQs

What's the difference between development finance and bridging?

Bridging loans provide a lump sum upfront for quick purchases or light refurbishment. Development finance releases funds in stages as construction progresses, monitored by a quantity surveyor. Development finance typically allows higher leverage against end value (GDV) but requires more documentation and oversight.

Can first-time developers get finance?

Yes, but it's more challenging. First-time developers typically need a strong professional team (architect, contractor, QS) and may face lower LTV/LTC limits or higher rates. Some lenders specialise in supporting new developers on smaller projects (1-4 units).

What is LTGDV?

Loan-to-Gross-Development-Value. This measures the total loan facility against the expected end value of the completed project. Most lenders cap at 60-70% LTGDV. For example, if GDV is £1m, maximum facility would be £600k-£700k.

How are funds released?

Typically in arrears against completed work. You'll submit drawdown requests with invoices/evidence, a QS will inspect the site, certify the work is complete, then funds are released. Some lenders offer accelerated drawdowns or upfront materials funding for experienced developers.

What happens if my project overruns?

Most development facilities have extension options (typically at increased rates). If you need more funding due to cost overruns, you may need to inject more equity or renegotiate with the lender. Having contingency in your budget (10-15%) is advisable.