Property Development Finance
We arrange tailored funding solutions for property development across the whole of the UK, Ireland and parts of Western Europe across all asset types. With access to a panel of 400+ lenders, every single deal is packaged precisely for your requirements, so we can source construction finance for you which is second to none on the market today.
Development finance tailored to you
We work with a panel of 400+ lenders, including leading specialist lenders, family offices and private capital providers, to ensure your development finance package is structured optimally around your scheme. Each scheme is individually considered, factoring in the developer’s track record, the build costs, estimated Gross Development Value and the exit plan to give you a funding proposal that is affordable, competitive and attainable.
We negotiate for you, achieve the lowest fee levels possible, and will showcase your scheme to lenders in the most positive light.
We constantly strive to add value… negotiating with lenders, driving down fees, and promoting the merits of your project every step of the way.
Residential development finance
When a lender considers lending for residential development they look at factors such as: experience of the developer, credit rating of the developer, demand in the area, cost of the land, build costs, GDV, and the exit plan.
Typical parameters offered by lenders on our panel include:
- UK & Western Europe
- Maximum LTC: up to 90%
- Maximum LTGDV: up to 75%
- Loan size: £100k to no upper limit
- Rates from: BBR + 4.99% p.a.
- Terms up to 48 months
- Equity options available
Ground‑up development finance is typically available from our lender panel with maximum LTC up to 90%, Max LTGDV: up to 75%.
Funding for non‑residential, commercial development
The range of commercial development options we can arrange through our 400+ lender panel includes offices, hotels, industrial or factory units and mixed-use schemes. Many lenders require some form of security on exit prior to works commencing such as pre-approved lets, an operator or a strong covenant.
Typical parameters offered by lenders on our panel include:
- UK only
- Maximum LTC: up to 85%
- Maximum LTGDV: up to 70%
- Loan size: £100k to no upper limit
- Rates from: BBR + 5% p.a.
- Terms up to 48 months
- Senior investment loans also available
A commercial development finance lender will often require some form of secured exit, such as a contract with a hotel operator.
Bespoke development finance solutions
Flexible structures we can arrange to support your project
- Stretched senior up to 90% of build cost
- Mezzanine up to 75% LTGDV
- Hybrid mezz/equity for higher leverage
- Site acquisition bridging
- Bridging pending planning
- Finish & exit bridging
- Development exit loans to refinance and release equity
High leverage options
When you need maximum gearing.
Mezzanine finance
Provides additional leverage above senior debt, reducing the equity required without profit share.
What we need for assessment of a project
Information we need to package your proposal for lenders. To present your project to the most suitable lenders from our panel of 400+, we will need, generally:
01 The Project
Executive Summary
A brief description of the project outlining what you are building, the timeline, costs, profit expectations and overall strategy.
Planning Status
Documentation relating to planning consent or applications.
Site Plan & Drawings
Architectural plans, elevations and CGIs of the finished development.
Technical Reports
Contamination, structural surveys, ground investigations or feasibility studies.
02 The People
Borrowing Structure
Details of the company or SPV borrowing money, including corporate structure and control.
Details of Personnel
Names, details and ownership percentages of individuals behind the project.
CVs & Profiles
Overview of the development team, experience and past project success.
03 The Numbers
Appraisal & Schedule
Full cost breakdown, GDV, profit calculations and unit-by-unit details.
Costs & Cashflow
Month-by-month cashflow and building cost breakdown.
Assets & Liabilities
Summary of personal and corporate assets, liabilities and net worth.
Credit Checks
Additional information regarding any past credit issues.
04 The Exit
Marketing Strategy
How the completed units will be marketed, sold or let, including target markets and pricing.
Sales or Valuation
Comparable sales or valuations supporting the proposed GDV.
Proof of Exit
Evidence of the loan repayment strategy; sales, refinance or lease agreement.
Don’t have everything to hand?
Send us what you have and we’ll help you build the rest of the pack.
Tips before applying
How to prepare for a successful development finance application:
Understand local demand, demographics and competition. Larger schemes may require a feasibility study.
Use conservative figures for GDV, build costs and timescales. Lenders will not rely on optimistic assumptions.
The development finance market is diverse and it takes a specialist broker to understand how best to increase your likelihood of getting approval. A specialist broker will also alleviate a great deal of stress.
If permission is needed, lenders will typically only approve loan facilities once approval has been granted (unless the bridging finance is for a property while awaiting the outcome of planning permission).
The ability of a contractor to complete the job within budget and on time can be crucial to the lender assessing their financial standing and overall viability as a contractor for this development.
The ability of your solicitor to expedite matters can make or break the transaction timeline.
Lenders will want to know exactly how the loan will be repaid-sale of the completed project, refinance to a more conventional term loan, or sale on to a tenant.
How much can you borrow?
There are many contributing factors in determining the size of a loan. The size of your loan and the rate offered by lenders on our panel will be determined by:
- Developer experience
- Credit profile
- Net worth and the amount of equity that you have available
- Cost of land
- Cost of build/refurbishment
- Gross development value
- Type of scheme (new build, mixed use, multi-unit)
- Feasibility and strength of exit strategy
Types of development finance and usage
Development finance facilities are used for a range of developments, most commonly, but not exclusively for:
- Ground up development: The funding you need to buy land and construct from new (usually drawn down in stages – land buy and then subsequent stages to match the build cost against works completed and certified)
- Conversions & change of use: Offices to residential (often on permitted development) convert a church, barn or old commercial premises to residential
- Light refurbishment: Cosmetic works on an existing building (kitchens/bathrooms, redecorate), this would normally be a refurbishment bridging product as opposed to true development finance
- Residential schemes: houses, flats, build to sell or build to rent
- Commercial and semi-commercial schemes: offices, retail, industrial, mixed-use with residential above the retail or office space.
- Specialist Sectors: Hotels, care homes, student accommodation (PBSA), co-living, retirement living, holiday let. These are normally required by specialist lenders as the exit value can depend on the trade and/or an operator or covenants not just on the bricks and mortar.
- Land and planning: Funding used to buy sites with no or only the prospect of planning and funds for when planning permission is achieved, these are high risk and therefore only a limited number of lenders will participate and leverage will be lower.
Development finance common FAQs
65-75% of the gross development value, or up to 100% of the build cost, on the proviso that you provide the site and some equity. This is subject to your assessment of the deal, experience, and exit strategy.
Typically between 10% and 30% of the total cost of the scheme – sometimes this is satisfied by the value of the site that you own. Joint ventures and mezzanine finance can often reduce the upfront equity requirement.
For standard UK deals, two to four weeks is achievable.
However complex developments or those with outstanding planning issues may take longer.
It helps if you have already got the appraisal, planning, and your exit strategy sorted.
No, not always.
Many developers can get finance with a planning application in place or via the permitted development route, or with conditions on planning. However, full planning permission usually secures the best rates and highest level of borrowing.
The exit strategy needs to be your route back out of the development – in simple terms, selling individual units, refinancing onto a BTL product, selling the whole scheme on completion, or achieving pre-lets for commercial deals.
This has to be realistic and credible.