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Property Development Finance

Property Development Finance

Property Development Finance is a funding solution for property developers who are looking to raise finance for site acquisition plus further staged funding for the construction costs.

Development finance is intended for properties that will either be sold upon completion, or retained as an ongoing investment and rented. Developed properties under this type of funding are not intended for the developer’s main residence. If a developer is building a property for his/her main residence, then a Self-Build Mortgage would be required. Property development finance is available to individuals looking to build new homes, redevelop existing buildings or property conversions. Development funding/finance can be for residential projects, or commercial projects such as industrial units or offices.


development finance


Property Development Mortgage

Development finance loans are generally short term funding agreements lasting no more than 36 months. Funding is made in stages from the initial site acquisition and throughout the property development process. The loan will be secured by first legal charge against the site or land being developed. In some lending arrangements the development lender many require additional security against other property the developer owns in order to help keep the total Loan-To-Value within lending limits. An additional charge on other property may be referred to as a ‘comfort charge’ and where the developer can offer additional security, more favorable lending terms can be offered to the developer since the lenders risk is reduced.


Whether you are an experienced property developer, or someone looking at a first-time project, our team of specialists will be able to negotiate excellent terms from our extensive panel of lenders.

We can arrange structured lending up to 100% of the overall project costs* (site cost + build costs) for all types of projects, whether large or small. From a single new house, to larger scale housing developments and blocks of apartments, we have all the funding solutions.

Loans are available from £50,000 to £25,000,000 with terms up to 36 months

*using Joint Venture funding


Here are some examples of projects we can fund:

• New blocks of apartments
• Warehouse conversions
• Residential housing
• Single house, or barn conversion
• Construction of additional storey on existing block of flats
• Commercial projects
• Mixed use – retail units with flats above
• Industrial units and offices


First-time developers are welcome – you don’t need experience as long as a team of professional builders is contracted, who can provide one of the recognised new-build warranty schemes, such as NHBC or Premier Guarantee.

Normal funding arrangements would be between 50% – 60% against site purchase, or site value, plus up to 100% of build costs. A pre-agreed draw down of funds is made at various stages throughout the build process to assist cashflow. In some cases, we can provide ‘top-up’ loans or Mezzanine finance, as it’s known. This can increase the overall funding to 90% of the total project costs, including site purchase.

All loans are individually assessed and lending terms are therefore bespoke. In order to obtain best terms for your project, call us now on 0117 223 2050 and speak to an adviser.