Development Finance Guides
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
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 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 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 for Student Accommodation and Co-Living Schemes: Complete UK Guide
Student accommodation and co-living developments now command specialist development finance facilities from £5 million to £50 million, with lenders offering up to 75% loan-to-cost ratios for projects that meet specific occupancy and location criteria.
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.
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.
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.
Build-to-Rent Development Finance UK: How Lenders Assess Rental-Led Schemes
Build-to-rent development finance in the UK typically requires 70% loan-to-gross development value (LTGDV) and up to 90% loan-to-cost (LTC) ratios, with lenders focusing heavily on rental yield projections, stabilization periods, and the developer's operational track record rather than traditional sale-based exit strategies.
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
Answer a few questions to see whether development finance could fit your project. It only takes about 2 minutes, with no hard credit check to start.