Business
Development finance
Development finance funds the purchase of a site and the build costs, released in stages as the work progresses. We help you structure the right facility, from a first project to an established development programme.
What we can fund
- Ground-up residential and mixed-use schemes
- Conversions, including permitted development
- Heavy and light refurbishment
- Mezzanine and equity finance to reduce the cash you put in
- Development exit loans while units are sold or let
How development finance works
Lenders usually lend up to around 60 to 70 percent of the gross development value (GDV), or up to around 80 to 90 percent of total costs. The land loan is released on completion of the purchase and the build loan in stages after each monitoring surveyor visit. Interest is normally rolled up and repaid from the sale or refinance of the finished scheme.
What lenders want to see
- Planning permission and a clear build programme
- A detailed cost plan and an experienced contractor
- Evidence of the GDV from local agents or a valuer
- Your track record, or an experienced professional team
Important information
Development finance is not regulated by the Financial Conduct Authority. Property used as security may be repossessed if you do not keep up repayments.
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No obligation. We’ll listen, explain your options and only recommend what’s right for you.
Calculator
Development finance calculator
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Q&A
Questions & answers
How much can I borrow for a development?
Lenders often lend up to around 60 to 70 percent of the gross development value, or around 80 to 90 percent of total costs, whichever is lower.
What is GDV?
Gross development value is the expected value of the finished scheme, either the total sale prices or the open market value of the completed units.
How is interest charged on development finance?
Usually monthly on the amount drawn, and rolled up so it is repaid when the scheme is sold or refinanced, rather than paid each month.
Can first-time developers get development finance?
Yes, although lenders will want to see a strong professional team, a realistic cost plan and possibly a bigger cash contribution.
Your first meeting is free
Talk to an independent financial adviser in St Albans. Call 01727 223251 or send us a message.