Development Finance.
High-leverage funding solutions for residential and commercial property developments across the United Kingdom.
90% LTC
Our stretched senior debt solutions allow developers to proceed with significantly lower equity requirements, freeing up capital for further acquisitions.
Senior Debt
Traditional 1st charge funding from institutional and private banks.
Stretched Senior / High LTV
Combining senior and mezzanine debt into a single, seamless 1st charge facility.
JV Equity
Full funding for developers with a strong delivery record but limited cash equity.
Development Funding Guide.
Property development finance is specialist lending that funds land acquisition and construction, usually on a short‑term basis until sale or refinance.
The process below takes a developer from site identification through to loan completion and staged drawdowns with mainstream and specialist development lenders.
Identify opportunities via agents, auction houses, off‑market approaches and land‑sourcing tools, then filter quickly using headline numbers like purchase price, GDV and build costs.
Establish a realistic GDV using local agent advice and comparable evidence from portals, then stress‑test for softer prices or longer sale periods.
Build a budget with a Quantity Surveyor where possible to ensure these headline numbers hold up under institutional scrutiny.
Work out profit on GDV as (GDV − total costs) / GDV; many lenders want to see circa 20% profit, with some flexibility for stronger stock.
If the profit margin is thin before finance costs, revisit land price, design efficiency or build spec rather than relying on aggressive leverage.
Planning Review
Review the planning position carefully, including outline vs detailed consent, conditions and any reserved matters to understand risk and timescales.
Site Constraints
Visit the site in person to check access, neighbouring uses, topography and any physical constraints that could increase build cost.
Assemble an experienced team (architect, QS, project manager and contractor) as lenders pay close attention to experience, especially for first‑time developers.
Strong professionals often help satisfy credit committees at institutions like Shawbrook, HTB or equivalent regional lenders.
Prepare a detailed appraisal showing GDV, costs, profit, phasing and sensitivity analysis to share with brokers, lenders and equity investors.
Decide whether you will use senior debt alone or a mix of senior and mezzanine finance to reduce the equity cheque while preserving profit share.
Senior development facilities typically include an element for the land (the "day 1" loan), plus a ring‑fenced build facility, with interest and lender fees funded from within the overall facility.
Build Drawdown Mechanics
The build loan is drawn in stages against certified works, with monitoring surveyors reporting to the lender on progress, quality and costs before each drawdown.
Many development lenders will consider first‑time developers where the scheme is sensible (often conversions or PD schemes) and the professional team is demonstrably strong.
Lenders will scrutinise personal net worth, track record in related fields and the robustness of the cost and sales assumptions.
True "100% development finance" typically involves a funder taking ownership of the site and employing the developer as a contractor.
In most cases, raising a meaningful deposit and combining senior and mezzanine loans to reach c.90–95% loan‑to‑cost allows developers to retain more upside.
With a broker, compare appetite and terms from mainstream and specialist lenders based on scheme type, location, gearing and experience.
Once pricing and structure are agreed in principle, negotiate key points like pre‑sales, collateral warranties, contingency requirements and any personal guarantees.
Maintain detailed records of all costs, contracts and professional reports from the outset to expedite lender and solicitor queries.
Submit a full credit application with CVs, appraisal, plans, build budget, programme and exit strategy. The lender will then instruct independent valuers and QSs to confirm your data.
Lender's solicitors will issue conditions including title, planning, construction contracts, professional appointments and collateral warranties that must be satisfied before completion.
On completion, the lender advances the day‑1 monies. During the build, the monitoring surveyor certifies works at agreed milestones to release stage payments.
Throughout the project, monitor costs and market conditions closely. Plan exits well in advance, whether via sale or refinance onto an investment facility.
Commence Your Appraisal.
Our senior debt structurers can provide an authoritative review of your development feasibility and indicative terms within 48 hours.
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