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
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.
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.
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.
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.
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.
Cost Overruns in Development Finance: How Contingency and Reforecasting Work
Cost overruns in development finance occur when actual project expenses exceed approved budgets, forcing developers to inject additional equity or secure supplementary 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 for SPVs: Why Property Schemes Use Special Purpose Vehicles
Over 80% of UK development finance applications in 2026 now use Special Purpose Vehicle (SPV) structures rather than personal or main company borrowing.
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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