Development Finance
Development finance funds ground-up construction, conversion and heavy refurbishment projects. Funding is released in tranches against a monitoring surveyor’s sign-off as the build progresses, with interest usually rolled up rather than paid monthly.
How it works
- Tell us about the site, the scheme, and your experience as a developer.
- We assess the numbers against gross development value (GDV) and total build cost.
- Funding is arranged, with the first tranche released against land and initial costs.
- Further tranches release as a monitoring surveyor confirms progress against the build programme.
Typical terms
| Funding level | Up to 65%–70% of GDV or up to 100% of build costs, with land funded at 50%–60% |
|---|---|
| Term | 6–24 months |
| Drawdown | Released in tranches against monitoring surveyor sign-off |
| Interest | Usually rolled up rather than serviced monthly |
Indicative only. Actual terms depend on the lender and your circumstances.
What it is used for
New build residential schemes, from single plots to multi-unit sites.
Permitted development conversions, such as office to residential.
Commercial to residential conversions.
Barn conversions and similar rural redevelopment projects.
Multi-unit schemes with a phased build and sale programme.
Heavy refurbishment that goes beyond the scope of a standard bridging loan.
Who this typically suits
- Developers with prior experience of a similar scale and type of project.
- Projects with an appointed, suitably experienced contractor.
- Schemes with a credible exit — sale of completed units, or refinance onto an investment facility.
When it is not the right fit
If the applicant has no build experience and no contractor appointed, most development lenders will decline — building a track record on a smaller scheme first, or partnering with an experienced developer, is usually the practical next step.
Bridging FinanceIf the work is genuinely cosmetic refurbishment rather than structural or ground-up development, Bridging Finance is faster and simpler to arrange.
Bridging Finance
What to have ready
None of this is required to start a conversation — it simply helps us understand the requirement faster once you get in touch.
- Planning permission status and scheme drawings
- Build cost appraisal and programme
- Your track record on previous developments
- Details of the appointed contractor
Frequently asked questions
Related products
Tell us what you're trying to fund.
No need to select a finance product before getting in touch. Start with a short enquiry and a member of the team will be in touch.