Development Finance. Without the Fuss.
Development finance explained for UK property projects — compare planning status, site value, build costs, GDV, experience, exit route, and lender fit.
Development finance explained
Use these guides to understand how property development finance is assessed, what evidence lenders need, and how planning, costs, GDV, and borrower experience shape funding options.
What to compare before funding a development
Planning position
Full planning, outline planning, permitted development, and pre-planning cases can all attract different lenders and terms.
Cost stack
Compare site purchase price, current site value, build costs, contingency, professional fees, and interest reserves.
GDV and profit margin
Lenders assess the gross development value and whether the projected margin leaves enough room for delays or cost overruns.
Drawdown structure
Development funding is usually released in stages, so check monitoring surveyor requirements and cash-flow timing.
Experience and exit
Your track record and planned exit, such as sale, refinance, or rental, can materially affect lender appetite.
Latest guides
Commercial Development Finance UK: Warehouses, Industrial Units and Business Parks
Commercial development finance UK for warehouses, industrial units and business parks provides £100k to £50m+ funding for developers building or converting industrial properties. These specialist facilities cover land acquisition, construction costs, and project delivery with flexible criteria and development-focused exit strategies.
Interest Reserve in Development Finance: How Borrowed Interest Affects Cash Flow
An interest reserve in development finance is a portion of the loan facility set aside at the outset to cover interest payments during the build period, when the project generates no income. Rather than paying interest from their own pocket each month, developers draw from this pre-funded reserve.
Development Finance vs Bridging Finance: Which Fits Your Property Project?
Development finance suits ground-up construction projects with staged funding needs, while bridging finance works best for quick property acquisitions and light refurbishments requiring immediate full funding.
Development Finance vs Commercial Mortgage: When Permanent Debt Makes More Sense
Development finance is short-term funding for construction projects with higher rates (6.5-10%) and 12-24 month terms, while commercial mortgages are long-term loans for completed properties at lower rates (4-7%) over 5-25 years.
Mixed-Use Development Finance: Funding Retail, Residential and Commercial Schemes
Mixed-use development finance provides funding for projects combining retail, residential, and commercial elements within a single scheme. These facilities typically offer £100k to £50m+ with staged drawdowns during construction, requiring 20-40% developer equity and exit strategies that account for multiple revenue streams from different property uses.
Care Home and Supported Living Development Finance UK: Complete Guide for 2026
Care home and supported living development finance UK provides specialized funding from £250,000 to £40 million for developers building or converting properties for elderly care and assisted living. Lenders require proven sector experience, minimum 40-bed viability, and offer 12-36 month terms with competitive rates starting from 2% over base rate.
Development Exit Finance: Refinancing a Finished Project Before Sale
Development exit finance allows property developers to refinance completed projects with lower-cost facilities while unsold units remain on the market. This short-term funding typically offers 3-18 month terms at competitive rates, releasing equity for new projects while reducing monthly interest costs compared to full development facilities.
Development Finance Application Checklist: Planning, Costs, GDV and Exit Evidence
A complete development finance application requires four critical components: valid planning permission or statutory consents, detailed construction cost breakdowns, professional GDV assessments, and a clear exit strategy. Missing any element typically results in application rejection or significantly higher rates.
Development Finance Costs UK: Interest, Exit Fees, QS Fees and Legal Costs
Development finance costs in the UK typically total 15-20% of the loan amount annually, combining interest rates of 6.5-12% per annum with arrangement fees (1-2%), exit fees (0.5-1.5%), QS monitoring fees (£1,500-£5,000), and legal costs (£4,000-£10,000).
Development Finance questions
The important details before you check eligibility.
What is development finance?
Development finance is property funding for construction, conversion, refurbishment, or ground-up projects, often released in stages as works progress.
Do I need planning permission?
Many lenders prefer full planning permission, but some will consider outline planning, permitted development, or pre-planning cases depending on the project.
What is GDV?
GDV means gross development value: the estimated value of the completed project. It is a core input for lender affordability and loan sizing.
Can first-time developers get finance?
Some lenders consider first-time developers, but experience, professional team quality, deposit level, and project complexity become especially important.
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