Our development finance products provide short- to medium-term funding to help you acquire, build, or improve property. Funds are typically released in stages as the project progresses, giving you the capital you need, when you need it, while helping to manage cash flow and interest costs.

Who is development finance for?

• Small and emerging developers planning their first or next scheme
• Experienced builders and contractors expanding their pipeline
• Property investors looking to add value through development
• Landowners seeking to unlock value through construction

Typical projects we can fund

• Ground-up new build residential schemes
• Office, retail, or industrial conversions to residential
• Light and heavy refurbishments of existing properties
• Mixed-use developments combining residential and commercial

Key benefits of our development finance

• Flexible funding structures tailored to your project
• Staged drawdowns aligned with build milestones
• Competitive rates and transparent fees
• Support from application through to completion and exit
• Fast, pragmatic decisions from a specialist team

Typical Loan Sizes & Leverage

Our development finance products are designed for small to mid-sized projects, from single-unit builds to multi-unit schemes. Typical loan sizes range from modest six-figure amounts up to several million, depending on project scale, experience, and location.

We usually lend as a percentage of total project cost and end value. Loan-to-cost (LTC) can often reach high levels, with developers contributing a smaller portion of the overall budget. Loan-to-GDV (gross development value) is typically lower, providing a safety margin if sales values soften. For example, on a £1m GDV scheme, we might fund a significant share of land and build costs while keeping the total facility below the full end value.

This structure helps you preserve cash for contingencies while ensuring the project remains financially robust.

Interest, Fees & Terms

Interest is usually charged on a monthly basis and can be either retained within the facility or serviced from your own cash flow. Many developers prefer retained interest, where the expected interest for the term is built into the loan, so there are no monthly payments during the build. Alternatively, serviced interest can reduce the overall facility size if you are comfortable making regular payments.

Common fees include an arrangement fee at completion, exit or redemption fees when the loan is repaid, and professional costs such as valuation and monitoring surveyor fees. Terms typically run from 6 to 24 months, depending on the complexity of the scheme and sales period. Shorter terms are common for simple refurbishments, while ground-up developments may require longer to allow for planning, construction, and disposal.

Security & Drawdowns

Development finance is usually secured by a first legal charge over the property or site, along with personal guarantees from the borrowing entity’s directors or key stakeholders. In some cases, additional security such as second charges or debentures over the borrowing company may be required, especially where leverage is higher or experience is limited.

Funds are not released in one lump sum. Instead, drawdowns are staged to match the build programme. The initial advance often covers part of the land purchase and any immediate costs. Subsequent drawdowns are released as works progress, following inspections by a monitoring surveyor who confirms that the build is on schedule and within budget. This staged approach protects both lender and developer, ensuring money is only advanced against completed value on site.

Interest is usually calculated only on funds drawn, which helps manage finance costs during the early stages of the project.

Ground-Up, Refurbishment & Exit Finance

Ground-up development facilities are tailored for new-build schemes, often offering higher leverage on build costs and longer terms to allow for construction and sales. These loans typically assume a full professional team, detailed cost plan, and robust contingency.

Light refurbishment finance suits projects with no major structural changes, such as new kitchens, bathrooms, or cosmetic upgrades. These loans are usually quicker to arrange, with lower monitoring requirements and shorter terms.

Heavy refurbishment covers structural alterations, extensions, or change of use. Lenders will look closely at planning, building regulations, and contractor capability, and may require more detailed reporting.

Exit finance is used to repay an existing development loan once the build is complete, giving extra time to sell units or arrange long-term investment finance. This can reduce pressure from looming expiry dates and may offer more flexible terms while you finalise your exit strategy.