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
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).
HMO Development Finance: Funding Conversions and Multi-Let Projects
HMO development finance provides £100k to £50m+ funding for converting properties into Houses in Multiple Occupation, typically offering 65-70% of Gross Development Value (GDV) at rates from 0.75% monthly. Specialist lenders assess projects on rental yield potential, conversion costs, and exit strategy rather than traditional mortgage criteria.
Development Finance Drawdowns: How Stage Payments and Monitoring Surveyors Work
Development finance drawdowns are staged payments released by lenders as construction milestones are completed and certified by an independent monitoring surveyor. This process protects both lender and developer by ensuring funds are released only when work is verified complete, typically taking 10-20 working days per drawdown request.
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.
Office-to-Residential Conversion Finance: Funding Change-of-Use Projects
Office-to-residential conversion finance: funding change-of-use projects requires specialist development finance rather than traditional mortgages. Most conversions use construction loans covering 60-70% of project costs at SOFR plus 350-550 basis points, with 18-36 month terms and 30-40% equity requirements.
Ground-Up Development Finance: From Land Purchase to Practical Completion
Ground-up development finance: from land purchase to practical completion is a specialist funding solution that covers the entire development cycle, from initial site acquisition through construction phases to final project delivery.
What Is Development Finance? Complete UK Guide for Developers
Development finance is short-term, property-secured funding for land acquisition and construction or major conversion. The lender normally releases money in stages after monitoring progress.
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.
Development Finance for Part-Complete Projects: Rescue Funding and Refinancing Options
Development finance for part-complete projects: rescue funding and refinancing options provide capital to developers whose projects have stalled, run over budget, or need additional funding to reach completion.
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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Explore development finance options
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