Development Finance

Staged Funding For Residential And Commercial Property Development Projects

Development finance provides staged capital for property development projects from initial land acquisition through to construction and final sale or refinancing. Whether you're developing a single house or a multi-unit residential scheme, development finance is released in tranches aligned with construction milestones to ensure cash flow matches project progress.

Types of Development Finance

Choose the structure that best fits your business requirements and financial goals.

Residential Development

Finance for house building projects from single units to large multi-plot residential developments with staged draws matched to construction milestones.

Commercial Development

Development finance for commercial projects including offices, retail, and mixed-use developments with bespoke underwriting and flexible drawdown structures.

Land Acquisition

Finance to purchase development land with or without planning permission, often in conjunction with development finance for the subsequent build phase.

Common Use Cases

Single plot development

Build your first home or small development project with staged finance aligned to construction progress.

Multi-unit residential

Develop housing estates or apartment blocks with finance released as each construction phase completes.

Commercial conversion

Convert existing commercial buildings into residential units with specialist development finance.

Land with planning

Acquire development sites with planning consent in place, positioning for immediate construction start.

Mixed-use schemes

Develop complex mixed-use projects combining residential, commercial, and retail with tailored finance packages.

Frequently Asked Questions

How is development finance drawn down?

Development finance is typically released in stages aligned with construction milestones — often called 'tranches'. Initial funds are released at start of works, with further draws at agreed stages such as foundations complete, first fix, and completion. This staged approach protects both lender and borrower.

What loan-to-value ratios are available?

Development finance typically offers up to 65-75% of the gross development value (GDV) or 85-90% of land value plus build costs for residential schemes. Commercial developments may have slightly different parameters. Your broker will structure the deal to maximise your return on equity.

Do I need planning permission to obtain development finance?

Most lenders require either full planning permission or evidence of a viable planning trajectory before committing funds. Some lenders will advance on land with outline planning or a pre-application agreement, though terms may differ. Your broker will identify the right lender for your situation.

How long does the application process take?

The development finance application process typically takes 4-8 weeks from submission to formal offer, depending on deal complexity and the information available. Well-prepared applications with complete documentation can often progress faster.

Can I use development finance for renovations?

Yes, development finance can be used for renovation and conversion projects as well as new build. Refurbishment finance products are available for works ranging from minor improvements to major structural changes, with lending criteria based on the end value of the completed property.

What happens if my project runs over budget?

Budget overruns are a common concern — your broker can structure a contingency allowance into the facility at the outset. If overruns occur during development, options include bringing in additional equity, extending the facility, or discussing revised terms with the lender before the situation becomes critical.

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Speak to our team about your funding requirements and let us find the right solution for your business.

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