Business Finance Guides
Plain-English guides to UK business loans, asset finance, invoice financing, and business credit cards. Compare lenders, check what you'll qualify for, and walk into a funding decision already knowing the answers.
Bridging Loans
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Development Finance
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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 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 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.
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.
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.
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.
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 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.
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