Development finance
Funding for building, converting and refurbishing.
Development finance funds the purchase of a site or building and the cost of the works, usually released in stages as the project progresses. Tell us about your project and, where appropriate, we'll introduce your enquiry to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries
- No credit checkNothing is searched when you tell us about your deal.
- About two minutesOne question per screen, only the ones that apply to you.
- Award-winning brokersSuitable enquiries are introduced to an award-winning specialist commercial finance brokerage.
- Introducer, not a lenderUK commercial property only. Your enquiry is shared with your consent.
In plain English
How development finance works
Development finance is short-to-medium-term borrowing used to fund property projects: ground-up construction, converting an existing building to a new use, or substantial refurbishment. Unlike a mortgage, the money is usually drawn in stages, an initial advance towards the land or building, followed by further drawdowns as work is completed and signed off.
Lenders assess a development on the overall picture: the total cost of the project, the expected end value (often called the gross development value or GDV), the planning position, the experience of the developer and the professional team, and how the loan will be repaid, typically by selling the finished units or refinancing onto a term facility.
Every lender has its own appetite for project size, location and type. The proportion of costs a lender will fund, how drawdowns are monitored and what they charge all vary. A specialist broker is commonly involved in structuring these deals, and a clear summary of the project makes that conversation far more productive.
Typical scenarios
Where this type of finance tends to come up.
Ground-up residential scheme
Building a small number of houses or flats on a site with planning permission in place.
Commercial-to-residential conversion
Converting an office, retail or industrial building into homes, whether under permitted development or full planning.
Heavy refurbishment
Structural or extensive works to an existing property before sale or letting.
Mixed-use development
A scheme combining commercial space with residential units above or alongside.
Who it may suit
It may be worth exploring if…
- You have a site or building, or one under offer, with a clear plan for it
- Planning permission is in place, or the route to it is well understood
- You have a realistic estimate of build costs and end value
- You can contribute a deposit or equity towards the project
- You have some development experience, or an experienced team around you
- You know how the finished project will be sold or refinanced
Before you start
Information likely to be useful
You don’t need documents to tell us about your deal, but having a rough idea of the following helps.
- The site or building, its location and purchase price or current value
- The planning position: granted, applied for, or not yet applied for
- What you intend to build or convert, and how many units
- Approximate build or refurbishment costs
- The expected end value once complete
- Your previous development experience
- How the finance will be repaid: sale, refinance or a mix
Deal figures
Know your numbers before you enquire.
A specialist will ask about these ratios in the first conversation. Working them out now makes your Deal Snapshot sharper and the conversation quicker.
Deal figures
Work out loan-to-cost and loan-to-GDV
Enter the site cost, build cost, expected end value and the facility you'd want. These are the ratios a development lender looks at first.
Enter the figures above to see the ratios.
Arithmetic only. Lenders set their own limits, and FundingFrame does not assess eligibility or quote terms.
Use these figures in the checkerHow it works
- Step 1: Tell us about your dealAnswer a short series of questions about your property, finance requirement and timescale.
- Step 2: We review the requirementFundingFrame turns the information into a structured commercial finance enquiry.
- Step 3: Speak to a specialistWhere appropriate, the enquiry is introduced to an award-winning specialist commercial-finance partner.
FAQ
Questions about development finance
Straight answers. Anything specific to your circumstances is for the specialist to discuss with you.
Guides
Related guides
Plain-English reading if you want more background before you start.
- Development finance
How does development finance work?
Development finance funds the site and the build, released in stages as work progresses. This guide explains how it's structured, what lenders assess, how drawdowns work and how the loan is repaid.
7 Sep 20264 min read
- Development finance
What does GDV mean in property development?
GDV, or gross development value, is the estimated value of a finished scheme. This guide explains what it is, how it's estimated, how lenders use it alongside cost, and why getting it wrong causes problems.
7 Sep 20264 min read
- Bridging finance
How does bridging finance work?
Bridging loans are short-term, secured and built around an exit. This guide explains when they're used, how interest and fees usually work, and what lenders want to see.
7 Sep 20264 min read
Have a project in the pipeline?
Tell us about the site, the plan and the numbers as you understand them. Where appropriate, we'll introduce you to an award-winning specialist commercial finance broker.
About 2 minutes · No obligation · UK enquiries