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
Small Builder Development Finance: Funding 1-10 Unit Residential Schemes
Small builder development finance provides flexible funding from £100k to £50m+ for residential schemes with 1-10 units, covering 70-85% of project costs including land acquisition and construction. Interest rates typically range from 10-15% annually, with interest-only payments during the build phase and loan terms of 12-24 months.
Pre-Planning Development Finance: Can You Borrow Before Permission Is Granted?
Yes, you can borrow money before planning permission is granted, but it typically requires specialist bridging finance rather than traditional development finance. Pre-planning funding helps developers secure land, fund planning applications, and position projects for full development finance once permission is obtained.
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 for Brownfield Sites: Remediation, Planning and Lender Risk
Development finance for brownfield sites requires specialist lenders who understand contamination risks, extended remediation timelines, and complex planning processes.
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 with Adverse Credit: Can Builders Borrow After Defaults or Insolvency?
Yes, builders can access development finance with adverse credit through specialist lenders who focus on project viability and property security rather than credit scores.
Development Finance With or Without Planning Permission: What Changes?
Development finance with planning permission offers lower rates, higher leverage (up to 87.5% LTC), and faster drawdown. Without planning permission, expect 20-30% higher rates, reduced loan amounts, and specialist lenders only.
LTV and GDV Explained: The Numbers Development Lenders Care About
LTV (Loan-to-Value) measures how much you can borrow against your security, while GDV (Gross Development Value) represents your project's completed worth. Development lenders use these ratios to assess risk and determine funding limits — typically offering 65-75% LTV on existing property value and 70-80% of total development costs against projected GDV.
Mezzanine Finance and JV Equity: UK Development Funding Compared
UK property developers seeking funding beyond traditional senior debt face two primary options: mezzanine finance provides structured secondary loans up to 90% of project costs, while JV equity partnerships can deliver 100% funding in exchange for profit sharing and reduced developer control.
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.
Ready when you are
Explore development finance options
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